Individuals Convicted of Tax Fraud

William Scott Dion was sentenced to 84 months in prison for conspiring to defraud the United States. He was also convicted of obstructing the efforts of the Internal Revenue Service. A press release from the Department of Justice announced the outcome, also noting that Dion was ordered to pay $3 million dollars as restitution for his tax fraud.

Dion was one of three people convicted of fraudulent actions against the United States. The individuals promoted and used multiple tax fraud schemes in their attempts to defraud the federal government by the use of a payroll tax scheme.

It came to light in the trial of the three individuals—Mr. Dion, Catherine Floyd, and Charles Adams—that they had worked together to create a scheme in which their employees were paid “under the table’” or off the IRS’ radar. They marketed the scheme to employers and individuals in which employers paid the employees in this manner as a way to bypass payroll taxes without appropriately withholding the amounts required. Contract America, Talent Management and New Way Enterprises were the three names under which the schemers ran the payroll fraud. Their scheme was lucrative, with 150 individuals signing up for it and with more than $2.5 million in wages and compensation that were being appropriately reported to the IRS coming through the system.

The trio also came up with a different tax fraud scheme that involved helping clients conceal their income and assets from the Internal Revenue Service. This particular scheme also had three names under which it operated—Your Virtual Office, Calico Management, and Office Services. The defendants in the case used various bank accounts that worked to hide the true identity of the individuals who owned the accounts. A reported $28 million dollars came through the accounts solely from this aspect of the elaborate tax fraud scheme.

It is essential to note that despite the elaborate schemes the individuals undertook, they were still investigated by the IRS and convicted. The IRS will flag suspicious activity, and the Department of Justice will not hesitate to prosecute when it comes to fraud.

 

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