A high-ranking executive in Northern Virginia has been sentenced to prison for failing to pay millions in employment taxes.
Peter Labovitz, the president of Connection Newspapers, was sentenced to six months in prison for willfully failing to pay over to the Internal Revenue Service (IRS) the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due and owing to the United States.
Labovitz, of Alexandria, Va., pleaded guilty on July 19, 2011, to the charges and admitted to causing over $940,000 in federal income taxes and FICA taxes to be withheld from employees’ wages between 2002 and 2008.
Between 2002 and 2008, Labovitz ran Connection Newspapers’ day-to-day operations, directed employees, approved payments, and made financial decisions on behalf of the company. However, he failed to timely pay over to the IRS the withheld taxes, despite being required to do so by law.
Labovitz was sentenced by Magistrate Judge John F. Anderson, who also ordered him to serve one year of supervised release, with six months of that time to be served on home confinement.
The case was investigated by the IRS-Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Tim Belevetz and Justice’s Tax Division Trial Attorney Caryn Finley.
More information about the Tax Division’s enforcement efforts can be found at www.justice.gov/tax.
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Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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