William David Ward II, Employment Tax Evasion, Iowa 2004

WASHINGTON – In a move to bring to light the dark underbelly of corporate greed, a federal court has ordered Advanced Underground Construction LLC, a construction company based in Grimes, Iowa, to begin paying employment taxes to the United States on a timely basis.

The preliminary injunction order, entered by Judge Harold D. Vietor of the U.S. District Court for the Southern District of Iowa, remains in effect while the government’s lawsuit is pending. According to the order, the defendants did not oppose the entry of the injunction, which requires them to deposit and pay the employment taxes, make all related tax return filings, and certify to the government that they have done so.

Violation of an injunction can result in civil and criminal sanctions, including fines and imprisonment. The government complaint alleges that, between the third quarter of 2004 and the present, William David Ward II, owner of Advanced Underground Construction LLC, repeatedly failed to make required employment tax deposits to the United States and instead used taxes withheld from employees’ wages as working capital, a practice sometimes referred to as “pyramiding.”

The complaint further alleges that the defendants’ misconduct has resulted in a balance due to the government of more than $370,000, for which the government is seeking a judgment against the company.

In the past decade, the government has obtained hundreds of injunctions prohibiting a wide variety of improper conduct, including the pyramiding of employment taxes.

Advanced Underground Construction LLC, a construction company based in Grimes, Iowa, has been ordered to begin paying employment taxes to the United States.

William David Ward II, owner of Advanced Underground Construction LLC, has been accused of employment tax evasion and using taxes withheld from employees’ wages as working capital.

A federal court has ordered Advanced Underground Construction LLC to pay employment taxes to the United States on a timely basis.

The defendants did not oppose the entry of the injunction, which requires them to deposit and pay the employment taxes, make all related tax return filings, and certify to the government that they have done so.

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