A Bay Area business owner has pleaded guilty to defrauding the United States out of more than $500,000 in employment taxes.
Herminigilda Manuel, 62, of San Leandro, California, was charged with willfully failing to account for and pay over federal employment taxes from 2010 through 2013. Manuel admitted to concealing her fraud by keeping two sets of payroll accounting records.
The first set of records reported wages paid to employees and taxes withheld, while the second set included additional wages that were not reported to the IRS. The employment taxes due on the additional wages totaled $512,000.
Manuel, the former owner of three assisted living facilities in the San Francisco Bay Area, was charged by information on February 8, 2019. Under the plea agreement, Manuel pleaded guilty to one count of willful failure to account for and pay over employment taxes, in violation of 26 U.S.C. § 7202.
The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed.
Manuel’s sentencing hearing is scheduled for June 11, 2019, at 2:30 p.m. before the Honorable Richard Seeborg, U.S. District Judge.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case, which was the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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