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Press Release

Cabarrus County Business Owner Sentenced to Prison for Tax Crime

For Immediate Release
U.S. Attorney's Office, Middle District of North Carolina

GREENSBORO – A Concord, North Carolina man has been sentenced to prison for willfully failing to collect or pay over taxes, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).   

RONALD JAMES McMURPHY, age 50, was sentenced on December 12, 2024, to 18 months in prison by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. At the conclusion of his active term of imprisonment, McMURPHY will be subject to a three -year term of supervised release. He was also ordered to pay $712,017 in restitution. McMURPHY pleaded guilty on September 4, 2024, to failing to truthfully account for and pay over trust fund taxes, a violation of Title 26, United States Code, Section 7202.

According to court documents, McMURPHY was the president of McMurphy Hydraulics, Inc. and was required under law to account for and pay to the Internal Revenue Service (IRS) employment taxes consisting of Social Security, Medicare, and federal income taxes. From the first quarter of 2016 up to and including the third quarter of 2022, McMURPHY willfully failed to do so on behalf of McMurphy Hydraulics, Inc.’s employees and amassed $438,502 in employer tax liability. McMURPHY was also the president of Powertek Equipment, Inc. and required under law to account for and pay to the IRS employment taxes. From the fourth quarter of 2019 up to and including the third quarter of 2022, McMURPHY willfully failed to do so on behalf of Powertek Equipment, Inc.’s employees and accrued $273,515 in employer tax liability.

The case was investigated by IRS Criminal Investigation (IRS-CI).  The case was prosecuted by Assistant United States Attorney Laura Jeanne Dildine.

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Updated December 16, 2024