Gary Hunsche, Payroll Tax Fraud, Illinois 2021

Troy Businessman Pleads Guilty to Payroll Tax Fraud

A Troy, Illinois businessman has entered a guilty plea on a charge that he willfully failed to pay millions in federal payroll taxes. Gary Hunsche, 54, admitted in federal court today that he committed the offense while serving as the owner-operator of a Troy-based staffing company called Unique Personnel Consultants.

According to court records, from 2014-2016, Hunsche properly withheld over $8 million in federal taxes from the paychecks of roughly 3,000 to 5,000 employees, most of whom were hired out to clients as temporary workers. But rather than paying the full amount to the IRS, Hunsche kept over $4 million of it for himself.

“Business owners have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Investigations of employment tax fraud is one of the priorities for IRS CI special agents, and those individuals who cheat their employees and other honest taxpayers will be investigated and prosecuted to the fullest extent of the law.”

Hunsche is scheduled to be sentenced on August 17, 2021 and faces up to five years in prison. United States District Judge Staci M. Yandle will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS Criminal Investigation agents conducted the investigation. Assistant U.S. Attorneys Norman R. Smith and Luke Weissler are prosecuting the case.

“We urge individuals who suspect or know of an individual or company that is not complying with the tax laws to contact the local IRS Criminal Investigation Office at (618) 622-2160 or visit this website: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity,” said a statement from the IRS.

In his plea, Hunsche acknowledged using a portion of the unpaid taxes on his own residence, including landscaping work, a barn with a full-size indoor basketball court, and partial construction of a new home.

Mandatory Facts:

Defendant/Respondent: Gary Hunsche

Criminal Charges: Willfully failed to pay millions in federal payroll taxes

City and State: Troy, Illinois

Exact Date: 2014-2016 (crime date)

Sentence or Outcome: Faces up to 5 years in prison

Dollar Amounts: $8 million (federal taxes withheld), $4 million (kept by Hunsche)

Source: https://www.justice.gov/usao-sdil/pr/troy-businessman-pleads-guilty-payroll-tax-fraude-0