Joseph Eugene Lemay, Payroll Tax Fraud, New York 2024
Payroll Tax Cheat: Former President of Moving Company and Bookkeeper Accused of Evading $7.8 Million in Payroll Taxes
A federal indictment charges Joseph Eugene Lemay, the former president of a moving company, and Joel Lingat, the company's bookkeeper, with perpetrating a long-running scheme to evade $7.8 million in federal payroll taxes owed to the Internal Revenue Service. The indictment alleges that Lemay and Lingat conspired to create sham companies, assign foremen and movers to these fictitious companies, and fraudulently make it appear that these companies were independent contractors.
As a result, the moving company and its affiliates were able to deduct the cost of labor as an expense on their tax returns, without withholding or paying over any payroll taxes to the IRS. Lemay and Lingat allegedly used this scheme to evade in excess of $7.8 million in payroll taxes, including FICA and Medicare contributions, during the charged period.
Lemay, 65, is also alleged to have evaded his personal income taxes. He self-surrendered to the federal courthouse in Manhattan on [Date] and is expected to be presented on the charges in the indictment.
The case is assigned to U.S. District Judge Mary Kay Vyskocil. In related news, former President of Company-1, Salman Rami Haim, and current President of Company-1, Nissim Fadida, previously entered guilty pleas to participating in the payroll tax fraud conspiracy.
According to the indictment, the scheme was perpetrated from in or about 2010 through in or about December 2016. Lemay and Lingat allegedly worked with other co-conspirators to create sham companies, assign employees to these companies, and make it appear that these companies were independent contractors.
Lemay and Lingat are charged with one count of conspiracy to defraud the United States, one count of tax evasion, and other related crimes. If convicted, Lemay faces up to five years in prison and a fine of up to $250,000. Lingat faces up to five years in prison and a fine of up to $250,000.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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