FOR IMMEDIATE RELEASE	CONTACT: Lauren Horwood
March 29, 2011	PHONE: (916) 554-2706
www.usdoj.gov/usao/cae	usacae.edcapress@usdoj.gov
Docket #: 2:09-CR-0398 LKK

SACRAMENTO, Calif.-- United States Attorney Benjamin B. Wagner announced today that William Roseberry, age 59, previously of Rocklin, was sentenced this morning by Senior United States District Judge Lawrence K. Karlton to 28 months in prison for evading and failing to remit over $1 million in taxes to the Internal Revenue Service.   The defendant, who the Court characterized at sentencing as being a “scofflaw,” had previously entered a guilty plea to willfully attempting to evade or defeat taxes on September 29, 2009.

This case was the result of an extensive investigation by the Internal Revenue Service-Criminal Investigations, as well as the U.S. Attorney’s Office.   Assistant United States Attorney S. Robert Tice-Raskin prosecuted the case.

According to court documents, Roseberry owned and operated a drywall business in Rocklin, as a sole proprietorship, under the name of Western Wallboard and/or Bustos Drywall between October 2003 and September 2006.  During this time period, Rosenberry evaded or failed to remit more than $1 million in employment and income taxes owed to the Internal Revenue Service in connection with the 350-plus employees of the drywall business.  Roseberry falsely reported to the Internal Revenue Service that the total wages paid to employees by the drywall business were approximately $229,972.42, and that the total amount of Social Security taxes and Medicare taxes due thereon were approximately $35,185.78, when, in fact, the total wages subject to taxation were the approximate sum of $5,638,917.93, and the corresponding taxes owed were $862,754.44.  In addition, Roseberry collected income taxes from employees in the approximate amount of $236,379.00, but did not remit the same to the Internal Revenue Service.

“We believe that a substantial portion of the total tax gap, the difference between what is owed and what is paid, involves employee withholdings” said Scott O’Briant, Special Agent in Charge  IRS Criminal Investigation.  “Businesses that have employees are required to pay the employer’s portion of employment taxes to the IRS for each of their employees, as well as withhold and pay over to the IRS certain taxes from the employee.  Individuals involved in schemes to evade the payment of these types of taxes are in violation of the Federal tax laws and face consequences that can result in jail time.”

As part of the sentence, Roseberry was ordered to pay restitution to the Internal Revenue Service in the amount of $1,040,500.36.

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