BOSTON – The owner of a firm that offered payroll and payroll tax products and services to tiny companies in New England was sentenced on Thursday, July 22, 2021 for defrauding shoppers by diverting the cash her clientele set aside for payroll taxes.
Patricia Lindau, 65, of Newburg, Maine, was sentenced by U.S. District Court Choose Denise J. Casper to three yrs in jail and two years of supervised launch. Lindau was also requested to spend restitution of $1,422,122 and forfeiture of $1,121,292. On Feb. 24, 2021, Lindau pleaded responsible to 1 count of wire fraud and just one count of tax evasion.
Concerning 2017 and the spring of 2020, Lindau engaged in a scheme to defraud several of her consumers by failing to pay out around to the Inner Revenue Support (IRS) and Massachusetts Section of Earnings (DOR) the payroll taxes that she withdrew from her clients’ financial institution accounts. Lindau utilized her access to her clients’ accounts to transfer cash that her shoppers intended to use to satisfy their payroll tax liabilities into her firm’s small business checking account. Lindau then sent just about every customer a weekly report falsely indicating that she experienced paid out the money in excess of to the IRS and DOR.
When Lindau’s purchasers received letters from the IRS and DOR indicating that their payroll taxes had not been compensated, Lindau lied to the consumers and falsely advised them that the letters were a mistake and that she would get treatment of it. In some instances, she then compensated the taxes late.
Lindau’s scheme continued into the initial quarter of 2020 when most of her consumers closed owing to COVID-19 and then uncovered that their employees’ payroll taxes experienced not been and were being not remaining compensated.
About the class of the scheme, Lindau failed to shell out around when owing far more than $2 million and prompted a internet decline to her clients of in excess of $1.1 million.
Performing United States Attorney Nathaniel R. Mendell Ramsey E. Covington, Performing Exclusive Agent in Demand of the Internal Revenue Service’s Felony Investigation and John Hayes, Director of the Felony Investigations Bureau, Massachusetts Office of Profits designed the announcement these days. Assistant U.S. Attorneys Sara Miron Bloom and Mackenzie Queenin of Mendell’s Securities, Monetary & Cyber Fraud Unit prosecuted the scenario.