Australian Man Sentenced to Serve More Than 18 Years in Federal Prison for Production of Child Pornography
Oklahoma City, Oklahoma – Today, THEODORE MICHAEL ZACHRITZ, of Nichols Hills, Oklahoma, was sentenced to 18 months in federal prison for willfully failing to pay over to the Internal Revenue Service federal taxes that he withheld from his employees’ wages, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Zachritz was ordered to pay $461,363.84 in restitution to the IRS.
For many years, Zachritz and his wife owned and operated Lifestyle Pools, LLC in Oklahoma City. As owner of the company, Zachritz deducted and withheld federal income taxes, Social Security taxes, and Medicare taxes (commonly called “payroll taxes”) from the wages of Lifestyle Pools employees. Under federal law, an employer must deduct and withhold payroll taxes from employees’ wages, and then pay over those withheld taxes to the IRS at the end of each quarter.
On January 22, 2013, the United States charged Zachritz with willfully failing to collect and pay over to the IRS the federal income taxes, Social Security taxes, and Medicare taxes withheld from wages of Lifestyle Pools employees for the third quarter of 2006 through the end of 2009. On January 31, 2013, Zachritz pled guilty to a one-count Information. At the plea hearing, Zachritz admitted that he deducted and withheld more than $290,000 in payroll taxes from his employees’ wages during that period. He also admitted that he knew he was required by law to turn over to the IRS the withheld federal payroll taxes each quarter, but he did not do so. Zachritz admitted that he still has not paid over to the IRS any of the payroll taxes that he withheld from 2006 to 2009.
Today, United States District Judge Joe Heaton sentenced Zachritz to 18 months in federal prison, followed by three years of supervised release. In addition, Zachritz was ordered to pay $461,363.84 in restitution to the IRS. He must report to federal prison on July 26, 2013.
This case was the result of an investigation conducted by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Chris M. Stephens.