Two Iowa businessmen, Randy Less and Darrell Smith, have been indicted on charges of willfully failing to pay employment taxes, resulting in a total loss of over $423,000 to the US government.
According to the indictment, Less, a 48-year-old resident of Hopkinton, Iowa, and Smith, 59, of Forest City, Iowa, were the majority owners and managers of Permeate Refining Inc., an ethanol production company based in Hopkinton. Between 2009 and 2012, the pair allegedly failed to pay over $423,000 in federal income, social security, and Medicare taxes withheld from the wages of their employees.
The indictment alleges that Less, as the general manager of Permeate Refining Inc., was responsible for collecting and paying over the taxes. However, he allegedly failed to do so, resulting in a loss of over $116,000 in taxes between 2009 and 2010.
After Algae Energae purchased an ownership interest in Permeate Refining Inc. in September 2009, Smith, a corporate officer and manager of Algae Energae, also became responsible for collecting and paying over the taxes. However, he allegedly failed to do so, resulting in a loss of over $307,000 in taxes between 2011 and 2012.
If convicted, both Less and Smith face a statutory maximum sentence of five years in prison and a $250,000 fine for each count.
The indictment is a result of an investigation by the IRS Criminal Investigation, the FBI, the US Postal Inspection Service, and the US Environmental Protection Agency. Assistant U.S. Attorney Tim Vavricek and Trial Attorney Matthew Hoffman are prosecuting the case.
An indictment is not a finding of guilt, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Key Facts
- State: Iowa
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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