Benjamin Thomas, III, Failing to Pay Federal Trust Fund Taxes, Louisiana 2023

Fed Jury Convicts Hammond Man of Failing to Pay $970,000 in Federal Trust Fund Taxes

BENJAMIN THOMAS, III, 52, of Hammond, Louisiana, was found guilty by a federal jury of five counts of failing to truthfully account for and pay over federal trust fund taxes, the U.S. Attorney's Office for the Middle District of Louisiana announced.

The verdict came after a three-day trial before U.S. District Judge Brian A. Jackson. Thomas had been living in the Dominican Republic since early 2023.

According to the evidence presented at trial, Thomas owned and operated Lighthouse Community Care, Inc., a mental health services clinic based in Baton Rouge, Louisiana. As the business expanded, Thomas opened several locations across Louisiana and hired more than 100 employees.

Throughout the company's existence, Thomas withheld federal income, Social Security, and Medicare taxes from his employees' paychecks and was required to pay these funds to the IRS on a quarterly basis. However, he consistently failed to timely file Lighthouse's quarterly employment tax returns and did not pay over the withheld funds to the IRS.

For the five specific time periods charged in the indictment, Thomas failed to truthfully account for and pay over more than $970,000 in trust funds.

According to the evidence, the IRS frequently communicated with Thomas through written notices, phone calls, and an in-person interview to remind him of his tax obligations and encourage him to pay what he owed. However, Thomas diverted company funds to personal accounts and spent hundreds of thousands of dollars on luxury items, including a Lamborghini and a McLaren.

'The defendant willfully failed to satisfy one of the most fundamental obligations business owners face - to truthfully account for and pay over the federal income, Social Security, and Medicare taxes that they withhold from their employees' paychecks,' said Acting U.S. Attorney Ellison C. Travis.

Thomas faces up to five years in prison and a $250,000 fine for each count, as well as restitution and supervised release. He is currently living in the Dominican Republic.

Source: https://www.justice.gov/usao-mdla/pr/federal-jury-convicts-hammond-man-failing-pay-over-federal-trust-fund-taxes