Judith Cefaly, Failing to Remit Federal Payroll Taxes, Pennsylvania 2019
SCRANTON – Judith Cefaly, a 54-year-old woman from Mountain Top, Pennsylvania, was sentenced to 24 months of imprisonment and two years of supervised release for failing to remit to the Internal Revenue Service (IRS) federal payroll taxes. Cefaly was the former general manager and part owner of Shakti, Inc., a beauty salon and spa in Kingston, Pennsylvania, from 1997 through 2017.
According to United States Attorney David J. Freed, Cefaly previously pleaded guilty to an information alleging that she withheld federal payroll taxes from employees’ paychecks, but failed to then remit those taxes to the IRS. Over the course of tax years 2011 through 2016, Cefaly failed to remit over $646,000 of those federal taxes to the IRS, instead using the funds for her personal benefit.
Cefaly, 54, was the former general manager and part owner of Shakti, Inc., from 1997 through 2017. Her crimes occurred between 2011 and 2016. The exact date of the crime is not specified, but she was sentenced on September 11, 2019.
The investigation was conducted by the IRS Criminal Investigations Division. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo. In addition to the terms of imprisonment and supervised release, Judge James Munley also ordered Cefaly to pay $646,620.26 in restitution.
Cefaly was the owner of Shakti, Inc., a beauty salon and spa in Kingston, Pennsylvania. She failed to remit over $646,000 of federal payroll taxes to the IRS. She used the funds for her personal benefit, violating the law.
The crimes of Judith Cefaly are a reminder that failing to pay taxes can have serious consequences. Cefaly’s sentence serves as a warning to others who may be tempted to cheat the system.
Judith Cefaly must now face the consequences of her actions. She was sentenced to 24 months of imprisonment and two years of supervised release. She must also pay $646,620.26 in restitution to the IRS.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →