Dec. 8, 2010

HEALTH SERVICES ENTREPRENEUR PLEADS GUILTY TO NOT PAYING TAXES

KANSAS CITY, KAN. – Jeffrey Phillips, 41, Leawood, Kan., has pleaded guilty to failing to pay more than $4.7 million worth of payroll taxes for the companies he owns, U.S. Attorney Barry Grissom said today.

In his plea, Phillips admitted that from 2001 to 2005 his companies withheld tax payments from employee’s paychecks including federal income taxes, Medicare, and Social Security taxes. During those years, Phillips failed to make payments due to the IRS totaling $4,794,886.

The companies Phillips owned included:
JP Holdings, LLC, formed in Shawnee, Kan., in 2002, which was the sole or primary shareholder for other entities.
Citadel Holdings, LLC, which operated a nursing home in St. Joseph, Mo.
Citadel Partners, LLC, which provided employees to a nursing home in St. Joseph, Mo.
Rainmakers, LLC, a management company.
Elk Manor, LLC, which provided management services for a nursing home in Moline, Kan.
LTC-ES, a payroll company providing services to nursing homes.
LVCO, LLC, which provided employees and management services to a nursing home in Leavenworth, Kan.
Bladen Foods, LLC, a meat processing plant in El Dorado.
Lush Farms, LLC, which purchased, bred and raised show cattle on 80 acres near McLouth, Kan.
ViaCare Home Health, LLC, a home health care company.
Elf Support Services, LLC, an in-home nursing service in Emporia.
Midwest Nursing Home Investors, LLC, which provided employees to in-home nursing services.
Jewell Healthcare, LLC, which provided employees to nursing facilities.

Sentencing is set for March 1, 2011. He faces a maximum penalty of five years in federal prison, a fine up to $250,000 and restitution. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Scott Rask for their work on the case.