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Construction Boss Jailed for Tax Fraud

Wednesday, September 23, 2015

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A New York construction company owner has been sentenced to prison for running a nearly $3.8 million payroll tax fraud scheme through his Yonkers-based business.

Patrick White, owner of R & L Construction, was sentenced Sept. 16 in White Plains, NY, Federal Court to six months in prison for the scheme, according to a statement from the U.S. Attorney’s Office. White pled guilty to tax fraud charges in January.

According to a Jan. 30 statement released by the Attorney’s Office, White diverted funds by under-reporting some of his employees' wages to the Internal Revenue Service between 2005 and 2011. As a result, he racked up $3.76 million in unpaid and unreported payroll tax liabilities.

©iStock.com /  Phil Cardamone

Patrick White, owner of R & L Construction in Yonkers, NY, was sentenced to prison and home confinement for failing to report employee tax withholdings and using the money for himself instead.

White then used the money to buy homes, to gamble and to pay for other personal expenses, authorities said.

Taxpayers = Victims

“The victims in this scheme are the American taxpayers,” said Manhattan U.S. Attorney Preet Bharara in the January statement. “But the ultimate loser will be the defendant Mr. White who gambled his liberty and his reputation on his tax fraud scheme not being found out.”

IRS Special Agent in Charge Shantelle P. Kitchen echoed Bharara's sentiment. She said in January that taxpayers and workers lose out when an employer practices tax evasion.

U.S. Attorney Bharara
Official Photo

Manhattan U.S. Attorney Preet Bharara said the victims in the case were American taxpayers.

“When business owners deliberately fail to pay their fair share of payroll taxes, American taxpayers and businesses have to make up the difference,” added Kitchen. “Additionally, they hurt their own workforce by potentially depriving their workers of future benefits to which they may be entitled.”

Confinement, Repayment

As part of his sentencing, White also will have to sell property to repay the IRS for his unpaid balance and will spend a year in home confinement after he is released from prison, the Attorney's Office said.

White avoided the statutory maximum sentence, which would have been three years in prison, the Attorney’s Office said.

   

Tagged categories: Construction; Good Technical Practice; Government; Internal Revenue Service; North America; Taxes

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