San Antonio Doctor Sentenced to Federal Prison for Failure To Pay Withholding Taxes and Tax Evasion
In San Antonio this morning, 60-year old Anthony P. Sertich, Jr., was sentenced to 41 months in federal prison and ordered to pay more than $2.9 million in restitution to the Internal Revenue Service announced United States Attorney Richard L. Durbin, Jr., and IRS-Criminal Investigation Special Agent in Charge William Cotter.
On March 2, 2016, a federal jury convicted Sertich of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion. According to court documents, Sertich was a medical doctor who was the Member, Director and President of Advanced Artistic Facial Plastic Surgery of Texas, PA (AAFPST) and South Texas Otorhinolaryngology, PA (STO). During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the IRS in payroll taxes withheld from AAFPST’s employees’ paychecks.
In addition, Sertich was found guilty of tax evasion. Between 2002 and 2010, Sertich accrued $2,927,366.45 in unpaid payroll taxes penalties and interest for AAFPST and STO. Sertich evaded paying the taxes by withholding and keeping money, which should have been paid to the IRS, and by repeatedly filing bankruptcy to take unfair advantage of the automatic stay of creditors.
Instead of paying the payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments. Sertich also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.
“Dr. Anthony P. Sertich, Jr., deliberately evaded paying federal payroll taxes for over eight years, cheating the tax system, his employees, and ultimately, all other taxpayers,” stated United States Attorney Richard L. Durbin, Jr. “He withheld money from his employees’ pay, which he applied to his own use. Then, he abused the bankruptcy process to defeat possible collection efforts.”
“IRS-Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the potential loss of future social security or Medicare benefits for the employees,” stated Special Agent in Charge William Cotter of IRS-Criminal Investigation, San Antonio. “Employers, such as Dr. Anthony P. Sertich Jr., who do not remit withheld employment taxes to the IRS are not only enriching themselves, they are creating financial problems for their employees.
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant United States Attorney William R. Harris.