KANSAS CITY, KAN. – A Missouri businesswoman is headed to federal prison after a brazen scheme to pocket employee payroll taxes. Chelli Payne, 59, of Raymore, Missouri, received a six-month prison sentence followed by six months of home confinement after admitting to systematically stealing funds earmarked for the Internal Revenue Service (IRS).
Payne pleaded guilty to one count of failing to account for or pay over employment taxes. The scheme unfolded at A Family Tree Enterprises (AFTE), a Kansas-based business in Olathe providing crucial day and residential services to individuals with intellectual or developmental disabilities. While AFTE dutifully withheld federal income taxes from its employees’ paychecks, that money never reached its intended destination.
Court documents reveal that as a key figure within AFTE, Chelli Payne was directly responsible for ensuring these withheld taxes were correctly submitted to the IRS. But between the second quarter of 2015 and 2019, Payne repeatedly failed to remit the funds. Instead, she diverted the money for her own purposes, leaving the IRS with a staggering loss of $1,055,367.
The fraud wasn’t a one-time lapse in judgment; it was a sustained pattern of theft, impacting the financial stability of a company dedicated to vulnerable populations. The IRS-Criminal Investigation unit meticulously investigated the case, uncovering the full scope of Payne’s deception. Federal investigators pieced together years of financial records, exposing the deliberate nature of the tax evasion.
U.S. District Judge handed down the six-month prison sentence, followed by six months of home confinement. But the penalties don’t end there. Payne was also ordered to pay full restitution in the amount of $1,055,367 – meaning she will be forced to repay every penny she stole from the government and, indirectly, from her own employees.
Assistant U.S. Attorney Christopher Oakley prosecuted the case, securing the conviction and ensuring Payne faces consequences for her actions. The case serves as a stark warning: skimming payroll taxes isn’t a victimless crime. It’s a federal felony with serious repercussions, and the IRS will relentlessly pursue those who attempt to cheat the system.
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Key Facts
- State: Kansas
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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