Former CFO Arrested For Failure To Pay Employment Tax

HOUSTON - Lanny C. McCandles has been arrested for failing to pay employment tax and other tax offenses, announced United States Attorney Kenneth Magidson.  

A federal grand jury returned the 16-count indictment Tuesday, Feb. 11, 2014. He was arrested today and is expected to make his initial appearance before U.S. Magistrate George C. Hanks tomorrow at 10:00 a.m.

According to the indictment, McCandles was the Chief Financial Officer for Complete Care Medical Inc. In that role, he was responsible for collecting, truthfully accounting for, and paying over the company’s employment taxes, including funds withheld in trust from employee paychecks to pay income tax and Medicare and Social Security taxes. However, instead of paying these taxes, McCandles allegedly embezzled the withheld funds between 2008 and 2010 and used them to pay personal expenses.

The indictment further alleges McCandles made false personal tax returns. He allegedly attached fictitious Forms W-2 claiming withholdings when, in fact, he did not have any withholdings from his wages. He also attached fictitious W-2s to tax returns he prepared on behalf of his girlfriend, according to allegations.

The indictment alleges actual and attempted tax loss to the U.S. Treasury of more than $134,000.

If convicted, McCandles faces a maximum of five years on each of the nine counts of failure to pay employment taxes, as well as three years on each of three counts of making a false tax return and four counts of preparing false tax returns.

IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration investigated the case. Assistant U.S. Attorney Stephen L. Corso is prosecuting.