Former Fargo Business Owner Sentenced for Failure to Pay Over Employment Taxes
FARGO - U. S. Attorney Christopher C. Myers announced that on March 28, 2016, Tammy J Devier, 43, Crary, ND, was sentenced before U. S. District Judge Ralph R. Erickson to serve five (5) years of supervised probation for Willfully Causing the Failure to Pay Over Employment Taxes. Judge Erickson also ordered Devier to serve 12 months of home confinement, pay restitution in the amount of $377,163.34 to the United States, and pay a $25 special assessment to the Crime Victims’ Fund.
Between 2007 and 2010, Devier was the owner of Red Arrow Recruiters, LLC, a Professional Employment Organization which provided various employment and payroll services to businesses. On or about Feb. 1, 2010, Devier failed to pay the 4th quarter of 2009 employment and payroll taxes she had received from the companies she represented to the IRS. Over the course of a two-year period beginning in mid-2008 through 2009, Devier received, from her clients, quarterly taxes for the third and fourth quarters of 2008 and the first, third, and fourth quarters of 2009 in the total amount of $377,163.34, but failed to pay those taxes over to the IRS.
“Professional Employment Operations companies, such as Red Arrow Recruiters, LLC, and TDJ Enterprises, LLC, were hired by employers to assist them with the withholding and collection of taxes from employees and to prepare and file accurate payroll tax returns. Ms. Devier had a duty to prepare correct tax returns and accurately pay over the taxes withheld to the IRS; instead she used her position of power to defraud her clients by not making tax payments or payroll tax deposits to the IRS,” stated Shea Jones, Special Agent in Charge of the St. Paul Field Office IRS Criminal Investigation Division. “The IRS is committed to aggressively investigating those individuals who engage in tax fraud.”
This case was investigated by the Internal Revenue Service, Criminal Investigative Division.
Assistant U. S. Attorney Scott Schneider prosecuted the case.