Jason Rudolph, Failing to Pay Taxes, Missouri 2023

KANSAS CITY, Mo. – A brazen act of tax evasion has come back to haunt a Missouri man, with a $750,000 price tag attached. Jason Rudolph, 47, of Kingsville, Mo., pleaded guilty in federal court today to failing to pay both the payroll taxes he collected from his employees and his personal income taxes.

According to the guilty plea, Rudolph owned and operated Jay’s Residential, which provided residential psychiatric care for children at several locations in Grandview. By pleading guilty today, Rudolph admitted that he did not deposit the employees’ Federal Insurance Contributions Act and Medicare (“FICA”) taxes and income taxes that he withheld from his employees’ wages and did not pay the employer portion of FICA.

Rudolph used the money to gamble, pay personal bills, and purchase vehicles, rather than paying his employees’ taxes as required. In addition to failing to pay over his employment taxes, Rudolph admitted he did not file personal income tax returns for the tax years 2008 through 2011.

The total tax harm from Rudolph’s criminal conduct is $755,643. Rudolph admitted that he failed to pay over $149,944 in employee payroll taxes and $344,902 in personal income taxes, for a tax loss of $494,845. The tax loss increases to $570,491 after including the employer portion of FICA, and to $755,643 including earlier employment tax periods and the employment tax owed to the state of Missouri.

Furthermore, the plea agreement revealed that Rudolph frequently went to casinos and paid personal expenses with Jay’s Residential’s funds. An analysis of bank records and records obtained from Ameristar Casino reveal that Rudolph withdrew more than $1.1 million from Jay’s Residential’s bank account at the casino from 2008 to 2011.

Rudolph could face a sentence of up to six years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.

Related Federal Cases