Moving Co $7.7M Payroll Tax Scheme : Executives Found Guilty

Moving Co $7.7M Payroll Tax Scheme

A New York federal jury has convicted the former president and head bookkeeper of a moving and storage services company for evading more than $7.7 million in federal payroll taxes. The shocking verdict was delivered after a two-week trial and found Joseph Eugene Lemay, 63, and Joel Lingat, 62, guilty on charges of conspiring to defraud the Internal Revenue Service.

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Moving Co $7.7M Payroll Tax Scheme : A Web of Deceit

The scheme took place over a six-year period from 2010 through 2016. Lemay and Lingat operated sham companies that supposedly employed laborers for the unnamed moving company, allowing the company to avoid paying crucial payroll taxes, including Federal Insurance Contributions Act and Medicare contributions.

Moving Co $7.7M Payroll Tax Scheme :Intricate Operation

The laborers were paid through these sham companies, which were registered under the names of Lemay’s relatives. This maneuver was designed to make it appear as if the companies were independent contractors billing the moving company for services.

Sentencing in July

The case, brought forward by the U.S. Department of Justice, has led to the duo facing a maximum sentence of five years in prison. Sentencing is slated for July, as per court documents.