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Convicted Business Owner Sentenced to 51 Months in Prison
Daniel Musa, 56, a Shakopee, Minnesota businessman, has been sentenced to 51 months in prison for using withheld employee taxes for his own benefit. The sentence was handed down on April 22, 2015, by U.S. District Judge John R. Tunheim in Minneapolis, Minnesota.
According to court documents, Musa owned and operated home health care businesses known as ‘Life Care’ between 2002 and October 31, 2009. During this time, he withheld income taxes and Social Security and Medicare taxes from his employees’ paychecks but failed to pay the full amounts owed to the Internal Revenue Service. Musa repeatedly paid little or nothing to the IRS, deducting a total of $101,340 from his employees’ paychecks and keeping $85,122 for his own personal use.
Between March 2006 and the end of 2009, Musa paid only a portion or none of the money withheld from his employees’ paychecks, resulting in a total of $284,000 in unpaid employment taxes. Musa’s scheme to evade paying taxes involved reconstituting his business under different names, including Life Care Home Health Care, Life Care Home Health, LLC, Life Care PCA, LLC, and four other names.
Assistant United States Attorney Michael L. Cheever prosecuted the case, which was investigated by the Internal Revenue Service-Criminal Investigations Division. Musa was also ordered to pay $284,000 in restitution as part of his sentence.
Musa’s extravagant lifestyle was funded by the money he stole from his employees’ taxes. He spent his ill-gotten gains on multiple houses, luxury vehicles, and other extravagances. Musa was also a frequent visitor to Mystic Lake Casino, losing between $1,000 and $2,000 per week. He visited the casino at least 462 times between 2006 and 2011.
Daniel Musa, 56, Shakopee, Minnesota, was sentenced to 51 months in prison for failure to account for and pay over withheld taxes. He was also ordered to serve three years of supervised release and pay $284,000 in restitution.
Key Facts
- State: Minnesota
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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