Gail Jones, Employment Tax Evasion, Virginia 2023

A Virginia businesswoman has pleaded guilty to employment tax crimes, according to a federal indictment unsealed last week.

Gail Jones, of Dumfries, Virginia, served as Director, Vice President and President of S&G Property Management Inc. (S&G), a parcel delivery service. Between 2013 and 2018, Jones caused income, Social Security and Medicare taxes to be withheld from S&G’s employees. However, Jones did not pay those withholdings to the IRS as she was required to do.

According to court documents and statements made in court, Jones did not pay the withheld taxes to the IRS, causing a tax loss of approximately $950,000. Furthermore, Jones fraudulently applied for two Paycheck Protection Program (PPP) loans, which were part of a COVID-19 relief program intended to provide loans to certain businesses to help them retain their employees or stay afloat during the pandemic. Jones applied for the loans even though S&G was no longer operating. She fraudulently received $20,800 in loans.

Jones is scheduled to be sentenced on June 27 and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.

IRS Criminal Investigation is investigating the case. Trial Attorney Marissa Brodney of the Justice Department’s Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.

Jones’ actions caused significant financial harm to the IRS and undermined the integrity of the tax system. Her guilty plea serves as a reminder that tax evasion will not be tolerated.

The case is being prosecuted by Trial Attorney Marissa Brodney of the Justice Department’s Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia. IRS Criminal Investigation is investigating the case.

Source: https://www.justice.gov/archives/opa/pr/virginia-businesswoman-pleads-guilty-employment-tax-crimes