Melissa Lynne Horner, Tax Evasion, Montana 2023

MISSOULA — In a shocking turn of events, Melissa Lynne Horner, 42, of Bozeman, pleaded guilty on April 8 to failing to pay the IRS approximately $2.8 million in employee and employer taxes, and instead spending some of the money on personal expenses, including recreational and motorsport vehicles, U.S. Attorney Leif M. Johnson said today.

A co-owner of H & H Earthworks, Inc., a Belgrade-based construction company that does commercial site-development work in four states, Horner faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on the felony charge. Horner was charged in a 34-count information.

A plea agreement reached by the parties calls for the government to seek the dismissal of 32 remaining counts and for Horner to be responsible for total restitution of $2,878,522 if the court accepts the agreement at sentencing.

As the financial executive for Earthworks, Horner withheld nearly $3 million from employee wages to cover payroll, Medicare and Social Security taxes. Rather than pay over those amounts to the IRS as required by law, Horner spent the money on personal expenses like motorcycles, a motor home, and home renovations.

“As the financial executive for Earthworks, Horner withheld nearly $3 million from employee wages to cover payroll, Medicare and Social Security taxes. Rather than pay over those amounts to the IRS as required by law, Horner spent the money on personal expenses like motorcycles, a motor home, and home renovations. As the deadline for filing tax returns approaches, the public should be aware that people like Horner who willfully violate the tax laws will be investigated and charged with felony tax crimes that can result in significant penalties including prison time, fines, and restitution,” U.S. Attorney Johnson said.

“Payroll tax evasion is not just a crime against the United States Government, but also a crime impacting the employees of Earthworks as it results in the reduction of their benefits.” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses these funds for their own personal gain.”

The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Horner was released pending further proceedings. Sentencing was set for Aug. 10 before U.S. District Judge Dana L. Christensen.

Source: https://www.justice.gov/usao-mt/pr/belgrade-construction-company-co-owner-admits-failing-pay-28-million-employee-employer