Yonkers Business Owner Pleads Guilty In White Plains Federal Court To Multimillion-Dollar Payroll Tax Fraud
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that PATRICK WHITE pled guilty today in White Plains federal court to tax fraud charges.
WHITE is charged with one count of failing to pay over payroll taxes accumulated by his commercial construction business.
Manhattan U.S. Attorney Bharara stated: “The victims in this scheme are the American taxpayers. But the ultimate loser will be the defendant Mr. White who gambled his liberty and his reputation on his tax fraud scheme not being found out.”
Special Agent in Charge Shantelle P. Kitchen stated: “When business owners deliberately fail to pay their fair share of payroll taxes, American taxpayers and businesses have to make up the difference. Additionally, they hurt their own workforce by potentially depriving their workers of future benefits to which they may be entitled.”
According to the Information previously filed in White Plains federal court:
WHITE operates R & L Construction Inc., a Yonkers-based contracting company. From 2005 through 2011, R&L Construction operated a scheme whereby certain employees’ wages were not properly reported, with the funds diverted from their proper purpose, payment of taxes due, so that White could use them for personal expenses including homes and gambling. In so doing, R & L Construction accumulated approximately $3,758,000 in unpaid payroll tax liabilities.
WHITE faces a maximum sentence of three years in prison on the sole charge in the Information. The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. WHITE is scheduled to be sentenced on May 21, at 10 a.m. before U.S. District Judge Cathy Seibel.
Mr. Bharara praised the outstanding efforts of IRS-CID and United States Department of State Diplomatic Security Service. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys John P. Collins, Jr. is in charge of the prosecution.