Campbell Home Health CEO Shane Brightpath Mike Pleads Guilty to Tax Evasion Scam

SAN JOSE – In a brazen display of corporate greed, Shane Brightpath Mike, 52, of Whittier, California, pleaded guilty to failing to pay over employment taxes withheld from the wages of his company’s employees.

Mike, the President and Chief Operating Officer of Excel Behavioral Services, Inc., a Campbell-based home health care company, was charged with five counts of Failure to Pay Over Employment Tax and two counts of Making and Subscribing a False Return. He pleaded guilty to one count of Failure to Pay Over Employment Tax.

According to the plea agreement, Mike withheld Social Security, Medicare, and income taxes from his employees’ wages and was responsible for paying those funds to the IRS. However, from the fourth quarter of 2014 through the third quarter of 2015, Mike did not pay any of the withheld taxes to the IRS. For the third quarter of 2014, Mike only paid part of the funds withheld.

For these five quarters, Mike did not pay to the IRS more than $1 million in taxes. During that same time, Mike used Excel’s funds to pay his personal expenses. Mike also admitted to filing false personal income tax returns for tax years 2014 and 2015, falsely claiming credit for federal tax withholdings from wages he received from Excel.

The tax loss to the IRS is estimated at $1,177,947. Mike is currently released on bond and his sentencing hearing is scheduled for September 24, 2024, at 9:00 a.m. before The Honorable Beth Labson Freeman, United States District Court Judge, in San Jose. The maximum statutory penalty is 5 years in prison, a fine of $250,000, and restitution of at least $1,177,947.

The prosecution is the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Sarah E. Griswold and Assistant Chief Matthew J. Kluge of the Justice Department’s Tax Division are prosecuting the case with the assistance of Lynette Dixon.