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Demuros’ Tax Heist Lands Them in Hot Water
WASHINGTON – A federal jury in Trenton, New Jersey, has convicted James and Theresa Demuro of Bridgewater of one count of conspiracy to defraud the United States and twenty-one counts of failure to pay over employment taxes.
According to the indictment and evidence introduced during trial, the Demuros co-owned and operated an engineering and surveying firm called TAD Associates LLC, dba DeMuro Associates. From 2002 through 2008, the couple withheld employment taxes from their employees’ paychecks but failed to pay more than $546,247 of those withholdings to the IRS.
In addition, the Demuros operated under a prior entity name, DA Resources Inc., which they ceased operating in an effort to thwart the ability of the IRS to collect unpaid employment taxes related to that entity. The government introduced evidence that beginning with the first quarter of 2007 through the last quarter in 2008, the defendants paid employees’ wages and withheld employment taxes from their paychecks but did not pay over any of the employee withholdings to the IRS.
The Demuros also withheld funds from their employees’ paychecks for health insurance, child support, and retirement savings accounts, and failed to pay these funds over to the appropriate entities. Evidence was also introduced that the Demuros used the withholdings for their business and personal use, including more than $280,000 in purchases from QVC, Home Shopping Network and Jewelry Television.
U.S. District Judge Garrett E. Brown Jr. scheduled sentencing for February 21, 2011. The couple faces a maximum of five years in prison and a $250,000 fine for each count of conviction.
Acting Assistant Attorney General John A. DiCicco commended the IRS Criminal Investigation special agents who investigated the case as well as Tax Division trial attorneys Tino M. Lisella and Jessica L. Nuzzelillo who prosecuted the case. DiCicco also thanked United States Attorney Paul J. Fishman and his entire office for their assistance.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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