SALT LAKE CITY – A hard-hitting sentence was meted out Thursday as Richard R. Whatley, the former owner of Alliance Staffing Management Inc. (ASM), was sentenced to 51 months in federal prison for willfully failing to account for and pay over employment taxes to the Internal Revenue Service (IRS). The judge’s hammer fell on Whatley, who also faced a $541,513 restitution order.
Whatley’s crime spree began in January 2010 when he was charged by a federal grand jury with five counts of willful failure to account for and pay over employment taxes. These charges pertained to three separate employee leasing companies, including ASM, that Whatley is alleged to have operated and controlled between 2001 and 2006. The total tax loss associated with his criminal conduct during these years exceeded $2.3 million.
In January 2013, Whatley pleaded guilty to one of the charges against him. According to the plea agreement, from 2002 through 2004, Whatley had control over ASM’s finances, including determining the amount of employment taxes due to the IRS and deciding which bills to pay. He is accused of causing the collection of $541,513 in employment taxes from ASM’s employees’ wages, but then failing to remit this money.
The investigation into Whatley was conducted by special agents of the IRS – Criminal Investigation, while Trial Attorneys Christopher J. Maietta and Stuart A. Wexler of the Justice Department’s Tax Division handled the prosecution.
For further information on the Tax Division’s enforcement efforts, visit www.usdoj.gov/tax.
Related Federal Cases
Key Facts
- State: Utah
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
