News and Press Releases

Former cEO of new jersey payroll services company sentenced to 27 months in prison for attempted tax evasion

May 2, 2012


NEWARK, N.J. – The former chief executive officer and sole owner of First Priority Pay (“FPP”), based in Hoboken, N.J., was sentenced today to 27 months in prison for trying to evade almost $477,000 in tax payments, U.S. Attorney Paul J. Fishman announced.

Jerry Carter Jr., 33, of Hillsborough, N.J., previously pleaded guilty to an Information charging him with one count of attempted tax evasion. Carter entered his guilty plea before U.S. District Judge Claire C. Cecchi, who also imposed the sentence today 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 and payroll tax return preparation; and collecting and paying over 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 more than $1.8 million – which resulted in a tax loss to the United States of approximately $476,832.

In addition to the prison term, Judge Cecchi sentenced Carter to serve three years of supervised release, during which he will be barred from working in the payroll industry. Carter has also agreed to pay $833,586 to the IRS, representing taxes and penalties.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, with the investigation.

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.

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