Harrisburg Businessman Sentenced To Prison Term For Withholding Tax Fraud
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 31-year old Harrisburg man was sentenced today before Senior U.S. District Court Judge William C. Caldwell to six months imprisonment, three years supervised release and payment to the IRS of $216,000, along with penalties and interest.
According to United States Attorney Peter Smith, Howard Ginting was the sole owner of Ginting Enterprises, Inc., a Pennsylvania corporation located in Harrisburg. Ginting Enterprises supplied day laborers to businesses in central and northeastern Pennsylvania. As the owner and operator, Ginting was required to withhold from the wages of employees the Federal Insurance Contributions Act (FICA) taxes on a quarterly basis. From October, 2006 through February, 2008, Ginting Enterprises paid wages totaling approximately $851,553; Gintingfalsely reported to the IRS that he had only paid $68,549. He underpaid the Social Security tax and Medicare taxes owed by GEI by approximately $119,799.
In February, 2008, Ginting shut down Ginting Enterprises and continued his same labor supply business under the name Trojan Services, Inc. Between February, 2008 and May, 2011, Trojan paid wages of approximately $638,477; Gintingfailed to report to the IRS all wages paid to his employees, underpaying Social Security tax and Medicare taxes by approximately $97,047.
This resulted in underreporting the employee and employer share of the Social Security and Medicare taxes in the total amount of approximately $216,846.
Ginting was charged by a grand jury in Harrisburg in an indictment in January 2014, following an investigation by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Gordon Zubrod.