News and Press Releases

Business Owner Failed to Pay Withheld Employee Taxes to IRS

FOR IMMEDIATE RELEASE
May 6, 2013

ERIE, Pa. -A resident of Fairview, Pennsylvania, pleaded guilty in federal court to charges of violating federal income tax laws, United States Attorney David J. Hickton announced today.

Kevin Hanlon, 47, pleaded guilty to three counts before Senior United States District Judge Maurice B. Cohill, Jr.

In connection with the guilty plea, the court was advised that Hanlon failed to make payroll tax payments to the Internal Revenue Service on behalf of his employees at KH Express, LLC and CJT Logistics, Incorporated from 2005 through 2008. According to the Indictment, although payroll taxes (including income, medicare and social security taxes) had been withheld from employee pay, Hanlon failed to pay over to the IRS approximately $473,647.32 of the employee payroll taxes that had been withheld from 2005 through 2008.

Judge Cohill scheduled sentencing for August 12, 2013 at 2:30p.m. The law provides for a total sentence of 15 years in prison, a fine of$750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Pending sentencing, the court continued Hanlon on bond.

Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.

The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Hanlon.

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