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FOR IMMEDIATE RELEASE
ANGELA DODGE

Dec. 9, 2010

PUBLIC AFFAIRS OFFICER
(713) 567-9388

FAILURE TO PAY MORE THAN $2 MILLION IN EMPLOYMENT TAXES LANDS EMPLOYER IN FEDERAL PRISON

(HOUSTON) –  The operator of a group of crane corporations will be serving 42 months in federal prison and required to pay the IRS more than $2 million in restitution for failure to truthfully account for and to pay over to the IRS the withholdings of federal income taxes, Social Security taxes and Medicare taxes withheld from the wages of employees, United States Attorney José Angel Moreno and Internal Revenue Service - Criminal Investigations (IRS-CI) Special Agent in Charge Rodney E. Clarke announced today.

United States District Judge David Hittner sentenced Gary C. Quintinsky to the prison term and ordered the payment of restitution to the IRS in the amount of of $2,278,759.13 at a hearing this morning. Quintinsky was convicted of failing to pay over the employment taxes of United Crane Inc, for the third quarter of 2003, in violation of Title 26, United States Code, Section 7202 after pleading guilty on April 23, 2010.

In the plea agreement filed in the record of the case, Quintinsky admitted that he operated a group of related crane corporations, including United Crane and United Payroll Services and ran the financial affairs of the corporations even though Ellynn Ogilvie appeared as the sole shareholder and president of the corporations and the sole signatory on all corporate bank accounts. Quintinsky admitted that he signed numerous letters as president of United Crane and signed title documents of cranes as president of the corporation in the related group owning the cranes. Quintinsky further admitted that he signed Ogilvie’s name on numerous other important corporate documents, including signing her name on the false employer’s federal quarterly tax return, IRS form 941, for United Crane’s third quarter of 2003. Quintinsky also admitted to using Ogilvie’s signature stamp to disburse funds from corporate bank accounts.

Unable to meet the conditions of the bond, Quintinsky has remained in federal custody since his indictment in July 2009. He will remain in federal custody pending transfer to a Bureau of Prisons facility to be designated in the near future where he will serve out his sentence. Upon completion of the prison term, Quintinsky will serve a three-year-term of supervised release.

Ogilvie has also pleaded guilty to similar charges in a related case and is set for sentencing on Jan. 26, 2011, before Judge Keith P. Ellison.

Investigated by special agents of the IRS - CI, the case was prosecuted by Assistant U.S. Attorney Charles J. Escher.

 

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