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California CEO jailed after failing to pay millions in tax
https://www.whatjobs.com/news/business-news/california-ceo-jailed-after-failing-to-pay-millions-in-tax
By Hugh Fort in Business News, posted February 13, 2022
A CEO has been jailed for 18 months after admitting not paying millions of dollars in employment tax.
Michael Todd Lucas controlled TradeMotion Inc, which is based in the town of Del Mar, which is a company that sold software to automotive dealerships.
Lucas was in charge of the company's business and financial affairs, and therefore had a legal duty to withhold employment taxes on behalf of the company's employees and pay that money to the IRS.
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From the fourth quarter of 2011 to the third of 2015, Lucas collected more than $2.1 million in withholdings from the staff and issued them in W-2 forms.
However, he only paid $760,017 to the IRS.
The CEO also did not pay the IRS employment taxes collected on behalf of other companies he controlled, which led to a tax loss of $3.5 million.
He was jailed for 18 months by U.S. District Judge Anthony J. Battalia, who also ordered Lucas to serve three years of supervised release and to pay approximately $4.9 million in restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Randy S. Grossman of the Southern District of California made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Charles A. O’Reilly of the Justice Department’s Tax Division prosecuted the case.
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