63-count indictment with large-scale payroll tax fraud
On September 5, 2012, in Charlotte, NC, Mr. Bruce Harrison, III, of Greensboro, NC was sentenced to 144-months (12 long years) in federal prison and ordered to pay more than $43 million in restitution for payroll tax fraud and failure to file individual income tax returns.
Court documents show that Mr. Harrison owned or controlled temporary staffing companies operating in at least 9-states under various corporate names. Harrison’s staffing companies were headquartered in Guilford County, N.C., and contracted with various businesses to provide temporary workers. Harrison’s staffing companies promised their business-clients that they would assume full responsibility for paying wages and withholding taxes and the forwarding of the withheld taxes to the IRS for those temporary worker employees.
As it turned out and was demonstrated by prosecutors, Mr. Harrison failed to account for and pay over in excess of $40 million dollars in federal payroll taxes for the temporary employees. Mr. Harrison went so far as to create false bank statements for auditors so as to conceal the nonpayment of the payroll taxes. Harrison was further convicted of corruptly endeavoring to obstruct the IRS by means of false statements to IRS revenue officers.
Where did $40 million go?
Where did $40 million go? – Mr. He Harrison used company funds to purchase personal residences, buy a yacht and finance commercial motion pictures. Harrison was also convicted of failing to timely file his own income tax returns for the years 2004, 2005 and 2006.
The prosecutors in the case speak out…
According to Assistant Attorney General Kathryn Keneally, she said: “The integrity of our Social Security and Medicare system depends on payroll deductions from honest, hard-working taxpayers being properly paid over.” “The sentence … demonstrates that those who steal the taxes paid by their employees risk lengthy prison sentences, and in the end, will still owe the taxes together with civil penalties.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina said: “Mr. Harrison not only defrauded his own employees, but he defrauded the American people as well. This sort of conduct is intolerable, especially during these difficult economic times, and we will do everything we can to make sure it is punished accordingly.”
Ripley Rand went on… “Mr. Harrison not only defrauded his own employees, but he defrauded the American people as well. This sort of conduct is intolerable, especially during these difficult economic times, and we will do everything we can to make sure it is punished accordingly.”
John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division said: “Honest, hard-working taxpayers count on their payroll deductions for Social Security and Medicare being paid over to fund their retirement and health care needs. They should rest assured that those who would steal those funds will be prosecuted to the fullest extent of the law.”
Are you anxious about something the IRS might frown over?
If you got involved in something by accident or on purpose that might be considered tax fraud, tax evasion, or money laundering, it might be wise to seek confidential legal counsel from a tax attorney. A taxpayers’ attempt to right a wrong will often rectify the worst of circumstances with the best possible outcome when compared to those who wait until an investigation uncovers wrongdoing. By waiting to be “found out,” you are more likely to be charged with a crime and face serious consequences. Call tax lawyer Paul Staley to schedule a no cost, confidential meeting at (619) 235-4095.