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Insurance coverage Producer Charged with Failing to Remit $29.5 Million in Payroll Taxes | USAO-NJ

NEWARK, N.J. – A Suffern, New York, insurance coverage producer was arrested as we speak for failing to pay $29.5…

By Staff , in Retirement Accounts , at January 21, 2022


NEWARK, N.J. – A Suffern, New York, insurance coverage producer was arrested as we speak for failing to pay $29.5 million {dollars} in payroll and unemployment taxes, and profit plan fraud, U.S. Lawyer Philip R. Sellinger introduced.

Joseph Schwartz, 62, is charged by indictment with 18 counts of willful failure to pay over employment taxes – totaling $29.1 million – two counts of evasion of unemployment taxes – totaling $367,027 – and two counts of failing to file annual monetary studies (Type 5500) with the Division of Labor for the worker 401K Profit Plan Schwartz sponsored. He’s scheduled to seem by videoconference as we speak earlier than U.S. Justice of the Peace Decide André M. Espinosa.

The indictment expenses that Joseph Schwartz, the principal proprietor of Skyline Administration Group LLC (Skyline), with its headquarters in New Jersey, willfully did not pay over Employment and Unemployment taxes regarding the staff at 95 well being care and rehabilitation services he operated in eleven totally different states. 

In accordance with the indictment:

In late 2016, Schwartz and no less than one different particular person managed the financing and staffing for Skyline’s numerous well being care services across the nation, and roughly 15,000 staff who labored there. From mid-2017 by way of June 2018, Schwartz did not pay over $29.5 million in payroll and unemployment taxes to the IRS.

Schwartz can also be alleged to have did not file annual monetary studies (Type 5500) with the Division of Labor regarding Skyline’s 401K Retirement Plan Contributions which can be routinely withdrawn from an worker’s gross pay and invested in accordance with the worker’s personal decisions. Type 5500 annual monetary studies are publicly accessible and supply individuals with the main points of the plan’s monetary situation, its operation, and its investments.

Every depend of willful failure to gather, account for, and pay over employment taxes and tax evasion is punishable by a most penalty of 5 years in jail and a most $10,000 nice. The 2 counts of evasion of unemployment taxes are punishable by a most of 5 years in jail and a most nice of $100,000. Every depend of 401K profit plan fraud is punishable by a most of 10 years in jail and a $100,000 nice.

U.S. Lawyer Sellinger credited Performing Deputy Assistant Lawyer Basic Stuart M. Goldberg of the Justice Division’s Tax Division; particular brokers of IRS-Legal Investigation, underneath the course of Particular Agent in Cost Michael Montanez in Newark; particular brokers and investigators of the U.S. Division of Labor, Worker Profit Security Administration, underneath the course of Thomas Licetti, Regional Director of the New York Workplace; and particular brokers of the FBI, underneath the course of Particular Agent in Cost George M. Crouch Jr., with the investigation resulting in the fees.

The federal government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Lawyer’s Organized Crime/Gang Unit and Trial Lawyer Shawn Noud of the Justice Division’s Tax Division.

The costs and allegations contained within the indictment are merely accusations, and the defendant is presumed harmless until and till confirmed responsible.



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