He could receive more than 20 years in prison when he’s sentenced.
Baltimore, Md (KM) A Frederick man who ran a payroll processing business pleaded guilty in federal court on Tuesday to charges of wire fraud, and aiding in the filing of a false tax return. The US Attorney’s Office for Maryland says David Richison, 64, had a company which did business as Period Payroll and provided payroll services to other companies in Maryland and Virginia.
Richison’s company printed paychecks for his clients’ employees, and was responsible for calculating employment taxes owed to the federal government. He was also entrusted by his clients to remove funds from their bank accounts and use that money to pay federal taxes and the fees he charged for his services.
Federal officials say Richison admitted in his plea agreement that between 2012 and 2014, he submitted the necessary forms indicating he reported the tax owed, but he did not turn over his clients’ money to the IRS. Instead, he began taking money from the escrow account established to pay federal taxes, and began using it pay off his personal and business-related expenses, such as legal fees.
By the end of 2014, there were insufficient funds in the escrow account, and, by that time, his clients began receiving notices from the IRS about unpaid taxes. Richison closed Period Payroll.
Prosecutors say the difference between the amount taken from his clients and paid to the IRS, and the actual payments made totaled $1,622.481.56. .
Federal officials say he could receive 20-years in prison for wire fraud, and three years for filing a false tax return when he’s sentenced on November 26th, 2019 in US District Court.. . Richison will also be required to pay restitution of $1,609,561.59.
By Kevin McManus