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April 23, 2010

OPERATOR OF UNITED CRANE INC. PLEADS GUILTY TO FAILING TO PAY $2 MILLION IN EMPLOYMENT TAXES

(HOUSTON) – The operator of United Crane Inc. has pleaded guilty to willfully failing to truthfully account for and to pay over the federal income taxes and FICA taxes from the wages of the company’s employees, United States Attorney José Angel Moreno and Internal Revenue Service - Criminal Investigations (IRS-CI) Special Agent in Charge Rodney E. Clarke announced today.

Gary C. Quintinsky pleaded guilty today before U.S. District Court Judge David Hittner to one count of willfully failing to truthfully account for and to pay over employment taxes - the withholdings of federal income taxes and of FICA taxes - from the wages of employees of United Crane Inc. for the third quarter of 2003. Quintinsky faces a maximum penalty of up to five years imprisonment for the felony tax conviction, a maximum $250,000 fine or both. Judge Hittner has set sentencing for July 19, 2010.

In the plea agreement filed in the record of the case today, Quintinsky admitted he had the duty to pay over the employees’ withholdings to the IRS and agreed that the total employees’ withholdings for United Crane Inc.’s 2003 third quarter still owed to the IRS is $134,655. Quintinsky operated a group of related corporations, including United Crane Inc. and was responsible for running United Crane Inc.’s financial affairs even though Ellynn Ogilvie appeared as the sole shareholder and president of the corporation and the sole signatory on all corporate bank accounts. Quintinsky admitted to signing numerous letters as president of United Crane Inc. as well as title documents as president of the appropriate corporation in the related group. Quintinsky took part in falsifying the Employer’s Federal Quarterly Tax Return, IRS form 941, for United Crane Inc.’s third quarter of 2003 and used Ogilvie’s signature stamp to disburse funds from corporate bank accounts. Quintinsky also admitted he aided, abetted and assisted Ogilvie in her failure to truthfully account for and to pay over the employment taxes for the third quarter of 2003.

For purposes of sentencing, Quintinsky has agreed that the total tax loss to the U.S. government in this case is approximately $2.28 million and has further agreed as part of his agreement with the United States to pay restitution in that amount to the IRS.   

Ogilvie pleaded guilty to failing to truthfully account for and pay over employment taxes on Sept. 3, 2009, before United States District Judge Keith P. Ellison in a separate but related case and is presently awaiting sentencing on June 16, 2010.   

This matter was investigated by IRS-CI and was prosecuted by Assistant U.S. Attorney Charles J. Escher.  

 

 

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