News and Press Releases

Former cEO of new jersey payroll services company first priority pay pleads guilty to attempted tax evasion

December 20, 2011


NEWARK, N.J. – The former chief executive officer and sole owner of First Priority Pay (“FPP”), based in Hoboken, N.J., admitted today to trying to evade almost $500,000 in tax payments, U.S. Attorney Paul J. Fishman announced.

Jerry Carter Jr., 32, of Hillsborough, N.J., pleaded guilty to an Information charging him with one count of attempting to evade taxes. Carter entered his guilty plea before U.S. District Judge Claire C. Cecchi in Newark federal court.

According to documents filed in this case and statements made in court:

FPP provided payroll services to its approximately 3,500 clients throughout the United States, including handling direct deposits, paycheck services, payroll tax return preparation, and collecting and paying over the clients’ payroll taxes to the IRS and various state taxing authorities.

Carter admitted that for calendar years 2007, 2008, and 2009, he intentionally failed to provide the IRS with true, correct, and complete information regarding income that he received in connection with his position as CEO and owner of FPP, in the aggregate amount of approximately $1,801,017 – which resulted in a tax loss to the United States of approximately $476,832.

The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for March 27, 2012. As part of his guilty plea, Carter has agreed to make full restitution to the IRS, plus interest and penalties to be determined.

U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.


Defense counsel: Joseph A. Hayden Jr., Esq.; Kevin A. Buchan Esq., Roseland, N.J.

Carter, Jerry Jr. Information

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