Payroll Service Company Operator Sentenced to Prison for Tax Evasion
Las Vegas, Nev. – John V. Troiano, operator of a payroll service company in Las Vegas, was sentenced on November 7, 2007, to 24 months in prison, three years of supervised release, and ordered to pay $638,927 in restitution, for his conviction on a tax evasion charge, announced Steven W. Myhre, United States Attorney for the District of Nevada.
From October 1, 2005, to December 31, 2006, Troiano controlled "Accuserve," which collected payroll taxes from clients and paid them to the Internal Revenue Service. During 2005 and 2006, Troiano, through Accuserve, collected payroll taxes from Shepard Eye Center, but remitted only a portion of Shepard's payroll taxes to the IRS. Troiano deposited Shepard's payroll taxes into one of Accuserve's bank accounts, transferred the payroll taxes to another Accuserve bank account, and then embezzled approximately $436,571.36 of the payroll taxes for his own use and benefit. Troiano failed to report the embezzled income on his 2005 tax return, and did not file a 2006 tax return, thereby causing the embezzled income to be unreported. Shepard Eye Center is to receive $522,933 of any restitution paid by the defendant, and the IRS is to receive $115,994.
Troiano is released on a personal recognizance bond and was permitted to self-report to federal prison on February 8, 2008.
The case was investigated by IRS Criminal Investigation and the FBI, and prosecuted by Assistant United States Attorney Brian Pugh.