New Jersey Man Convicted on Tax Charges
WASHINGTON - Following a jury trial that began on Nov. 9, 2010, a federal jury in Trenton, N.J., convicted James and Theresa Demuro, of Bridgewater, NJ, of one count of conspiracy to defraud the United States and twenty-one counts of failure to pay over employment taxes, the Justice Department and Internal Revenue Service (IRS) announced today.
According to the indictment and evidence introduced during trial, James and Theresa Demuro co-owned and operated an engineering and surveying firm called TAD Associates LLC, dba DeMuro Associates. From 2002 through 2008, the Demuros withheld employment taxes from their employees’ paychecks but failed to pay more than $546,247 of those withholdings to the IRS. In addition, the Demuros operated under a prior entity name, DA Resources Inc., which they ceased operating in an effort to thwart the ability of the IRS to collect unpaid employment taxes related to that entity.
At trial, the government introduced evidence that beginning with the first quarter of 2007 through the last quarter in 2008, the defendants paid employees’ wages and withheld employment taxes from their paychecks but did not pay over any of the employee withholdings to the IRS. In addition, the Demuros withheld funds from their employees’ pay checks for health insurance, child support, and retirement savings accounts, and failed to pay these funds over to the appropriate entities.
Evidence was also introduced that the Demuros used the withholdings for their business and personal use, including more than $280,000 in purchases from QVC, Home Shopping Network and Jewelry Television.
U.S. District Judge Garrett E. Brown Jr. scheduled sentencing for Feb. 21, 2010. James and Theresa Demuro face a maximum of five years in prison and a $250,000 fine for each count of conviction.
Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division commended the IRS Criminal Investigation special agents who investigated the case as well as Tax Division trial attorneys Tino M. Lisella and Jessica L. Nuzzelillo who prosecuted the case. Acting Assistant Attorney General DiCicco also thanked United States Attorney Paul J. Fishman and his entire office for their assistance.