Owner of Tulsa Software Company Indicted on Tax Charges

The owner of a computer software development company, who failed to pay over payroll taxes withheld from his employees’ wages and failed to file individual and corporate income tax returns, was indicted by a grand jury in Tulsa, Oklahoma, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Trent Shores. An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

“Earenest Grayson is an alleged dishonest employer who cheated both his employees and the United States government. As tax day approaches, I hope his story will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal prosecution,” stated U.S. Attorney Shores.

Earenest J. Grayson Jr., of Tulsa, Oklahoma, was indicted for 10 counts of failing to account for or pay over to the Internal Revenue Service (IRS) payroll taxes withheld from wages paid to employees of his business, Zealcon Corporation (Zealcon), during the years 2014, 2015, and 2016. Grayson was also indicted for three counts of failing to file corporate income tax returns for Zealcon for the years 2013, 2014 and 2015, and failing to file his own income tax returns for the years 2013, 2014 and 2015. 

According to the allegations in the indictment, as Zealcon’s owner, Grayson was responsible for reporting and paying over payroll taxes withheld from the wages paid to his employees. The indictment alleges that Grayson knew of this obligation and intentionally failed to account for or pay over to the IRS more than $300,000 in taxes that had been withheld from employee wages from January 2014 through June 2016. The indictment further charges that for the years 2013-2015, Grayson did not file corporate income tax returns on behalf of Zealcon or individual income tax returns for himself, despite being legally required to do so.

If convicted, Grayson faces a maximum sentence of five years in prison for each count of failure to account for and pay over payroll taxes and one year in prison for each count of failure to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.

The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division is prosecuting the case, in coordination with Assistant United States Attorneys Charles M. McLoughlin and Victor A.S. Régal,

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.