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FOR IMMEDIATE RELEASE |
April 29, 2008
TECUMSEH MAN ADMITS HE DIDN’T PAY TAXES ON MONEY STOLEN FROM TOPEKA NON-PROFIT
TOPEKA, KAN. – The former director of operations for a Topeka nonprofit corporation pleaded guilty Tuesday to federal tax charges.
Michael W. Slayton, 49, Tecumseh, Kan., pleaded guilty to one count of tax evasion and one count of failing to pay employee withholding taxes to the Internal Revenue Service.
The factual basis for the plea is as follows:
– Slayton was a founder and director of operations for Designs 4 Life, a nonprofit corporation created to assist families requiring in-home care providers for special needs individuals. He billed Medicaid for care providers’ hours.
– From 1999 to 2004, Slayton embezzled $238,097 from Designs 4 Life. He wrote 138 checks to himself from the nonprofit’s checking account and he altered the business’ records to conceal the crimes.
– In his personal tax returns, Slayton failed to include in his income the money he embezzled. As a result, he fraudulently avoided paying a total of $44,478 in taxes.
– He under reported withholding and F.I.C.A taxes paid by employees of Designs for Life. As a result, he failed to pay over to the Internal Revenue Service a total of $194,405 in employment taxes.
Sentencing is set for July 29. He faces a maximum penalty of 5 years and a fine up to $250,000 on each count. U.S. Attorney Eric Melgren commended the Internal Revenue Service and Assistant U.S. Attorney Christine Kenney for their work on the case.
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