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Press Release

Morgantown woman admits to tax fraud

For Immediate Release
U.S. Attorney's Office, Northern District of West Virginia

CLARKSBURG, WEST VIRGINIA – Diann Carol Clark, of Morgantown, West Virginia, has admitted to a payroll tax fraud charge, United States Attorney William J. Ihlenfeld, II announced.

Clark, 59, pleaded guilty today to one count of “Willful Failure to Collect or Pay Over Employment Tax.” Clark was employed by Alpha Associates, Inc. in Morgantown. Clark was an office manager and bookkeeper at Alpha Associates, where she managed payroll between 2014 and 2018. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare, and income taxes withheld from the wages of Alpha Associates employees. Despite knowing the firm withheld these payroll taxes from its employees’ paychecks, Clark did not pay over approximately $1,900,000, in such taxes to the IRS.

Clark faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Danae DeMasi-Lemon and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division are prosecuting the case on behalf of the government. The IRS investigated.

U.S. Magistrate Judge Michael John Aloi presided.

Updated November 4, 2021