North Royalton businessman charged with failure to pay over taxes collected from employees and embezzling from employee health plan
The U.S. Attorney’s Office for the Northern District of Ohio announced today that John George Medas, 67, of North Royalton, was indicted on 25 counts of failing to pay over taxes from employees and one count of embezzling from his employees’ health plan.
Medas owned and operated various manufacturing businesses and served as President of Guarantee Product Specialties, Inc., Fulton Manufacturing Industries, LLC, and FMI Products, LLC.
According to the indictment, Medas withheld payroll tax from employees but failed to pay these taxes to the IRS. Medas failed to pay over $760,725 from April 30, 2014, to January 31, 2019. Medas also withheld $3,807 in pre-tax health contributions and embezzled the funds between July 29, 2016, and September 16, 2016.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor. The case is being prosecuted by Assistant U.S. Attorney Brian McDonough.