Eric Anderson, of Dix Hills, New York, pleaded guilty today in the U.S. District Court for the Eastern District of New York to the willful failure to collect and pay over employment taxes, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Anderson owned three construction companies located in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over employment taxes to the IRS. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service. The estimated tax loss resulting from Anderson’s activities is between $1 and $2.5 million.
Anderson faces a statutory potential maximum sentence of five years in prison and a potential fine of up to $250,000. U.S. District Judge Arthur Spatt set sentencing for Sept. 19, 2014.
The case was investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.