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Former CFO Guilty of Tax Fraud Conspiracy
Michael R. Elliott, the former chief financial officer of Caremerica Inc., a chain of assisted living facilities in North Carolina, has pleaded guilty to conspiring to defraud the Internal Revenue Service (IRS), officials announced. This decision comes after Elliott was charged with numerous tax offenses in November 2011.
According to the indictment, Elliott was responsible for ensuring that the Caremerica companies collected, reported, and paid over federal employment taxes to the IRS. However, with Elliott as the chief financial officer, the Caremerica companies accrued more than $4.5 million in employment tax liabilities between approximately 2003 and 2006.
Elliott’s alleged tax evasion scheme involved filing and causing to be filed false IRS forms and failing to pay the employment taxes due. The indictment also alleges that in 2003, Elliott acquired partial ownership of Partners Pharmacy Services Inc. (PPS), which provided prescription drug and related services to the Caremerica ALFs. In March 2005, Elliott sold PPS to a subsidiary of Omnicare Inc. for $1.4 million, which was deposited into a bank account in someone else’s name.
In a hearing before Judge James C. Fox, Elliott agreed that he should be ordered to pay restitution of $4.8 million. His sentencing is set for the court’s term beginning November 5, 2012. The case was investigated by IRS-Criminal Investigation, and it is being prosecuted by Trial Attorneys Adam Hulbig, Todd Ellinwood, and Kevin Lombardi of the Justice Department’s Tax Division.
Elliott’s guilty plea marks a significant blow to the former CFO, who once held a position of trust and responsibility within the Caremerica companies. The investigation and subsequent charges serve as a reminder of the importance of adhering to tax laws and regulations.
As the investigation continues, it remains to be seen how the guilty plea will impact Elliott and the Caremerica companies. One thing is certain, however: Elliott’s actions have consequences, and he will be held accountable for his role in the tax fraud conspiracy.
This case serves as a cautionary tale for corporate executives and individuals alike. As the IRS and other law enforcement agencies continue to crack down on tax evasion and other financial crimes, it is essential to remain vigilant and compliant with tax laws and regulations.
RELATED: Pamela Kahut Sentenced for $211K Healthcare Fraud
RELATED: Kahut Sentenced for $211k Healthcare Fraud
Key Facts
- State: Federal
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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