Frank Alton Moody II, 56, of Arden, N.C., has pleaded guilty to conspiring to steal more than $2 million from client companies through a rigged payroll services operation, federal prosecutors announced today. Moody, former Chairman of the Board at CenterCede Services Inc., admitted to diverting client funds meant for federal tax payments to instead finance bloated executive salaries and cover spiraling business debts.
The fraud unfolded between November 2010 and November 2011, when CenterCede, based in Charlotte, collected money from businesses under the promise of handling payroll, tax remittances, worker’s compensation, and unemployment insurance. Instead, Moody and his co-conspirators — Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C. — withheld tax payments due to the IRS, leaving client companies exposed to penalties and audits while using the cash to sustain their collapsing scheme.
CenterCede was formed in August 2010 by Moody and Overcash to take over operations from The Resource Solutions Group (TRSG), a nearly identical payroll firm shut down by the IRS that same month for failing to pay over $9 million in withheld federal payroll taxes. Moody also served as Chairman of the Board at TRSG, marking a clear pattern of financial misconduct. The new company quickly followed the same path, prioritizing survival over legality.
To keep the fraud afloat, the conspirators created a tiered system of ‘priority’ clients — those with large payrolls that could inject immediate cash into CenterCede’s accounts. These clients had their obligations paid on time to mask the company’s growing cash shortfall, while others were left in the dark. When questions arose, the defendants lied. Moody himself sent emails falsely claiming tax delays were mere ‘oversites’ in the tax department, even as funds were deliberately rerouted to keep the scam running.
The charge of conspiracy to defraud clients and the IRS carries a maximum penalty of five years in federal prison and a $250,000 fine. As part of his plea agreement, Moody has agreed to pay restitution to the victim companies, though the exact amount will be determined by the court. Overcash and Thigpen have already been sentenced in connection with the same conspiracy.
The investigation was conducted by the U.S. Postal Inspection Service (Charlotte Division) and the IRS Criminal Investigation Division. Prosecution is being handled by Assistant U.S. Attorneys Corey F. Ellis and Taylor J. Phillips in the Western District of North Carolina. U.S. Attorney Jill Westmoreland Rose, along with Thomas L. Noyes of USPIS and Thomas J. Holloman III of IRS-CI, confirmed the details of the case in today’s announcement.
Related Federal Cases
- Payroll Services Chairman Moody Sentenced to 30 Months for $2M Fraud · North Carolina
- Ricky Costello Williams Sentenced in Tax Fraud Scheme · North Carolina
- Jamel ‘Goo’ Yates Gets 3 Years in $1.3M Wire Fraud Scheme · North Carolina
- Wallace Couple Busted in $3M Tax Fraud Scheme · North Carolina
- Treyton Thomas Charged in $4.5M Investment Fraud Scheme · North Carolina
Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News