Man Pleads Guilty to $20 Million Tax Fraud
HOUSTON – A man who had owned Stat Source Inc. has admitted he willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick.
Jonathan Adam Van Pelt withheld federal income taxes and Social Security and Medicare taxes from the wages of employees for one employment tax quarter. However, he did not timely file the required Employer’s Quarterly Federal Income Tax Return for that quarter reporting the withholdings and did not pay over the withholdings to the IRS.
In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.
He has agreed to pay $20 million in restitution to the IRS.
U.S. District Judge Alfred H. Bennett accepted the plea today and has set sentencing for Jan. 17, 2019. At that time, Van Pelt faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is investigating the case.