Denver man indicted for failure to pay over $2.5 million in employment taxes
DENVER – Lucilious J. Ward, age 62, of Denver, Colorado, was indicted by a federal grand jury in Denver on October 2, 2012, for failure to pay over employment taxes and false claims, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Lilia Ruiz announced. Ward appeared today in front of a U.S. Magistrate where he was advised of the charges pending against him.
On September 8, 2011, Special Agents with IRS Criminal Investigation executed a search warrant on Ward’s business, Global Access, located at 5455 East 52nd Avenue, Commerce City, Colorado.
According to information in the indictment and affidavit in application of the search warrant application, during the period for quarters ending September 30, 2006, through December 31, 2007, and June 30, 2008, through June 30, 2011, in the State and District of Colorado, Ward deducted and collected from Global Access employees, federal income taxes, Social Security taxes, and Medicare taxes totaling $2,556,764. Ward willfully failed to truthfully account for and pay over to the IRS the $2,556,764 he withheld from his employees’ wages. During this same time, Ward filed two false claims with the IRS attempting to receive over a $110,000 in refunds from the IRS on his Forms 1040 and 1040X, US Individual Income Tax Returns for tax years 2006 and 2007.
On October 22, 2007, Ward filed his U.S. Individual Income Tax Return (Form 1040) for the tax year 2006. Ward reported $147,500 in wages and fraudulently claimed federal income tax withholdings of $34,168 from Global Access. On October 29, 2010, Ward filed an Amended 2007 U.S. Individual Income Tax Return (Form 1040X). Ward was amending his 2007 income tax return because the original tax preparer omitted Ward's now fraudulently claimed income tax withholdings in the amount of $76,479.
For both the 2006 and 2007 tax years, Ward’s unjustified refunds from the IRS were based in part on the fraudulently claimed federal income tax withholdings, which Ward and Global Access never paid to the IRS. Furthermore, false Form W-2’s were attached to Ward's 2006 & 2007 (amended) individual income tax returns claiming federal income tax withholdings from Global Access when in fact no withholding were ever paid over to the IRS.
“Business owners who withhold their employees’ money for taxes, but steal those funds for their own use, are victimizing their employees and the United States,” said U.S. Attorney John Walsh. “We will prosecute them to the full extent of the law, just as we would prosecute any other thief.”
“Business owners who withhold and fail to remit employment tax withholdings are merely stealing from their employees and other Americans,” said Lilia Ruiz, Acting Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
Ward was charged with nineteen counts of failure to pay over tax and two counts of false claims against the IRS both of which carry a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count.
This case was investigated by IRS-Criminal Investigation.
Ward is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.