Jorge Montemayor, Failing to Pay Taxes, Texas 2013

Jorge Montemayor and Leticia Reyna Face Prison Time for Tax Evasion

LAREDO, Texas - In a recent crackdown on tax evasion, two business owners in Laredo, Texas, have been ordered to prison for their convictions of failing to pay over employment taxes to the Internal Revenue Service (IRS). Jorge Montemayor and Leticia Reyna pleaded guilty to the charges in January 2014 and November 2013, respectively.

U.S. District Judge Andrew Hanen handed down the sentences, with Montemayor receiving 30 months in federal prison and Reyna serving a 15-month term. Montemayor was ordered to pay restitution in the amount of $368,025.84, while Reyna was ordered to pay $48,562.44. Both defendants must serve a period of supervised release following their release from prison and must perform community service.

Montemayor, who served as the chief financial officer (CFO) of GDM Home Health Inc., a home health care business in Laredo, had authority to conduct financial transactions and exercised signatory authority on the company's bank accounts. Reyna, who was the president of Professional Skilled Services Inc., another home health care business in Laredo, also had similar authority.

As part of their plea agreements, both Montemayor and Reyna admitted to knowingly and willfully failing to pay federal income and FICA and Medicare taxes withheld from employee wages. In 2008, Montemayor failed to pay approximately $368,025.84, while Reyna failed to pay over $48,562.44 for the fourth quarter of the same year.

Investigations revealed that corporate funds were used for lavish trips to Europe and Las Vegas, sporting events, restaurants, jewelry, and real estate. Montemayor admitted to spending $46,548.75 on basketball tickets for the San Antonio Spurs and purchasing season tickets for the Laredo Bucks hockey team. He also provided local politicians and doctors with tickets to attend these events. Reyna, on the other hand, admitted to using corporate funds for shopping, restaurants, and private school expenses.

Both defendants were permitted to remain on bond and will voluntarily surrender to a U.S. Bureau of Prisons facility at a later date. The investigation was conducted by the IRS - Criminal Investigation and FBI, with Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher prosecuting the case.

Source: https://www.justice.gov/usao-sdtx/pr/business-owners-sentenced-prison-failing-pay-taxes-irs