Owner of Kansas Medical Staffing Company Indicted in Employment Tax Scheme
Instead of Paying IRS, Used Funds for Racecar Parts and other Personal Expenses
A federal grand jury sitting in Kansas City, Kansas, returned an indictment, which was unsealed yesterday, charging a Jefferson County, Kansas, man with seven counts of willful failure to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen McAllister for the District of Kansas.
According to the indictment, David Monhollon failed to pay over federal income, Social Security, and Medicare taxes withheld from the wages paid to employees of his medical staffing company, First Call Medical Group. The indictment alleges that Monhollon was the owner of First Call and was obligated to pay over to the IRS such payroll taxes on behalf of his company. Instead of remitting the money to the IRS, Monhollon allegedly used the funds to pay for personal expenses including racecar parts and equipment.
If convicted, the defendant faces a statutory maximum sentence of five years in prison for each count. He also faces a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Leon Patton and Tax Division Trial Attorney John Mulcahy, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.