Two Arrested for Failing to Pay Employment Taxes
|Feb. 22, 2013|
LAREDO, Texas – Jorge Montemayor and Leticia Reyna have been arrested following the return of a 14-count indictment accusing them of failure to pay over employment taxes to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Special Agent in Charge of IRS - Criminal Investigation Lucy Cruz.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Cruz. "The failure to pay over withheld taxes are very serious offenses; IRS-CI is committed to vigorously pursuing those who violate employment tax laws."
According to the allegations in the indictment, Montemayor and Reyna operated Professional Skilled Services Inc., a home health care business in Laredo. Montemayor opened and began to operate the home health care business GDM Home Health Inc. in 2006. Montemayor and Reyna both were authorized to take care of financial matters for Professional Skilled Services and were listed as signatories on this company’s bank accounts. Montemayor had this same authorization for GDM Home Health Inc., according to the indictment.
As owner/operators with control over their businesses’ financial affairs, Montemayor and Reyna were responsible for collecting and withholding employment taxes from their employees’ paychecks. Employment taxes include federal income tax, Social Security and Medicare taxes. Montemayor and Reyna reported these withheld taxes but allegedly failed to pay them over to the United States. The indictment further alleges Montemayor and Reyna caused their respective companies to divert corporate funds to cover non-business expenses, including trips and entertainment. Montemayor and Reyna still allegedly owe more than $125,000 in employment taxes on behalf of Professional Skilled Services Inc. employees, and Montemayor still owes more than $1.3 million in employment taxes on behalf of GDM Home Health Inc. employees, the indictment alleges.
Failure to pay over employment tax carries a statutory maximum penalty upon conviction of five years in prison and a $250,000 fine.
The investigation resulting in the charges against Montemayor and Reyna were conducted by the IRS-CI and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.