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Marine Staffing Agency Owner Pleads Guilty

Friday, March 24, 2017

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A Texas man who owned a staffing service for industrial and marine businesses has pleaded guilty to failing to pay about $18 million in taxes, according to the Department of Justice.

Richard Floyd Tatum Jr., 57, of Houston, owned Associated Marine & Industrial Staffing, a staffing firm that provided temporary workers for businesses in Texas and elsewhere. According to the DOJ, Tatum admitted to failing to file tax returns and in some cases filing but failing to pay, during a period stretching from 2008 through 2012.

Tax fraud
© iStock.com / JPecha

Tatum could spend up to five years in prison and be forced to pay penalties and restitution for failing to pay $18 million in employment taxes.

Tatum largely controlled AMI’s finances, prosecutors say, including signing checks and signing and filing employment tax returns. The company reportedly operated with about 1,000 employees, including both internal employees and those who worked as temps at other businesses, as employees of AMI.

During the period detailed, Tatum filed some false returns that failed to report AMI’s external employees, the DOJ says. In other cases, he filed returns that counted the employees, but did not make the necessary payments.

In all, prosecutors say he withheld about $12 million in payroll taxes between March 2008 and December 2012 without forwarding that money on to the IRS. He failed to pay another $6 million in social security and Medicare taxes during the same period, they say.

Ranch Payments, Vacations

Instead of paying the money to the IRS, prosecutors say he spent it on payments on his ranch, and travel to destinations like Las Vegas, Hawaii and France.

“Failure to pay over employment taxes taken from employee wages is a serious criminal offense,” said Chief Richard Weber, of IRS Criminal Investigation. “It not only harms the employees’ future social security and Medicare benefits, it’s stealing from honest taxpayers and the U.S. Treasury.”

“Employment taxes are not a source of funding for ranches or premium travel,” added Acting Deputy Assistant Attorney General Stuart M. Goldberg, of the DOJ’s Tax Division. “Those who keep these funds and use them as a personal piggy bank will be prosecuted and face incarceration.”

Tatum could spend up to five years in prison and be forced to pay penalties and restitution. His sentencing is set for June 1.

   

Tagged categories: Criminal acts; Government; Laws and litigation; North America; Program/Project Management; Taxes

Comment from Gregory Stoner, (3/27/2017, 11:14 AM)

This appears to have started in 2008 and run through 2012. Much to long. Something this big should have been found out much sooner like when his employees were filing their taxes. Come on now, stop with the stupidity.


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