Press Release
Mountain Top Woman Sentenced To 24 Months Of Imprisonment For Failing To Remit Federal Payroll Taxes
For Immediate Release
U.S. Attorney's Office, Middle District of Pennsylvania
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 11, 2019, Judith Cefaly, age 54, of Mountain Top, Pennsylvania, was sentenced to 24 months of imprisonment and two years of supervised release, by United States District Judge James Munley, for failing to remit to the Internal Revenue Service (IRS) federal payroll taxes.
According to United States Attorney David J. Freed, Cefaly was the former general manager and part owner of Shakti, Inc., a beauty salon and spa in Kingston, Pennsylvania, from 1997 through 2017. Cefaly previously pleaded guilty to an information alleging that she withheld federal payroll taxes from employees’ paychecks, but failed to then remit those taxes to the IRS. Over the course of tax years 2011 through 2016, Cefaly failed to remit over $646,000 of those federal taxes to the IRS, instead using the funds for her personal benefit.
In addition to the terms of imprisonment and supervised release, Judge Munley also ordered Cefaly to pay $646,620.26 in restitution.
The investigation was conducted by the IRS Criminal Investigations Division. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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Updated September 13, 2019
Topic
Tax
Component