CINCINNATI – Andrew E. Williams, 50, of Villa Hills, Kentucky was ordered to serve 15 months of home confinement and pay $49,991.14 in restitution to the Internal Revenue Service after admitting that he withheld money for taxes from his employees’ paychecks between October 2006 and April 2009 but never paid the money to the IRS.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, announced the sentence imposed today by Senior U.S. District Judge Herman J. Weber. Judge Weber also fined Williams $3,000.

Williams pleaded guilty on August 11, 2011 to one felony count of failure to collect and pay over employment taxes to the Internal Revenue Service.

Williams owns Club Aqua, Inc., which at the time was doing business under the name Club Ritz, when he withheld federal income tax, Social Security tax and Medicare tax (FICA Tax) from club employees’ paychecks but did not pay the taxes to the IRS or file quarterly federal income tax returns as required.  Williams also admitted that he did not pay his employer’s portion of these taxes. 

The total loss to the IRS from Williams’ conduct was $81,712,03, with the unpaid portion of this loss being the restitution ordered at sentencing today.

Williams’ plea agreement also obligates him to file complete and accurate tax returns with the IRS for all tax years and periods up to and including the date of sentencing which were required to be filed under U.S. tax laws but have not yet been filed. He also agreed to file with the IRS complete and accurate amended returns for all previously filed incomplete or inaccurate tax returns, and pay all taxes, penalties, and interest due and owing to the IRS.

Stewart commended the investigation by the Special Agents of IRS Criminal Investigation, as well as Senior Litigation Counsel Anne L. Porter, who prosecuted the case.

 

 

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