Franklin County Home Builder Indicted On Federal Tax Charges

St. Louis, MO - Lucinda Franek was indicted on charges of failure to pay employment taxes for the years 2008 and 2009, and failing to pay income tax for 2006-2008.

According to the indictment, Lucinda Franek was the President of Rick Franek Contracting, Inc. (RFCI), a custom home building business in Beaufort, Missouri.  She and her husband operated RFCI, with Lucinda Franek being responsible for the financial aspects, including payroll duties, and ensuring that the payroll taxes were timely filed and paid to the IRS.  She withheld taxes from employees’ paychecks, including federal income taxes, medicare and social security.  The indictment alleges that RFCI failed to pay $123,659 in payroll taxes for five calendar quarters in 2008 and 2009.   Additionally, the indictment states that during years 2006, 2007 and 2008, Lucinda Franek failed to pay income taxes of approximately $53,601.

"Business owners have a responsibility to withhold income taxes for employees and remit those taxes to the Internal Revenue Service," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation in St. Louis.  "We are committed to pursuing those who attempt to violate the employment tax laws."

LUCINDA FRANEK, Beaufort, MO, was indicted by a federal grand jury on five felony counts of failure to collect and pay over employment tax; and three felony counts of failure to pay income tax.  She appeared in federal court earlier today in St. Louis.

If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by IRS Criminal Investigation.  Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.