United States Attorney James L. Santelle for the Eastern District of Wisconsin announced that David Jensen (age: 58) of Oconomowoc, has been sentenced in federal court to 18 months in prison based on his conviction for filing a false federal income tax return. Jensen was the owner and former operator of Payroll Data Services, a payroll services company with offices located in Hartland and Madison. Jensen no longer operates this business.

During the years 2003 through 2005, Jensen diverted more than $3.5 million from accounts maintained by his business into which clients deposited funds that were to be used to pay payroll and payroll taxes, and he used these funds for his own benefit. Jensen did not notify his clients, let alone obtain his clients’ consent fo these transfers. Moreover, Jensen did not report these transfers as income on the tax returns he filed for the years 2004 and 2005. The government alleged that, as a result of this conduct, Jensen under reported his federal income taxes by more than $400,000. While Jensen acknowledged under reporting his income and taxes, he contended that he under reported his taxes by less than $400,000, but still more than $200,000.

This matter was investigated by the Internal Revenue Service. The prosecution was handled by Assistant United states Attorney Matthew L. Jacobs.

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