Virginia Man Pleads Guilty to Employment Tax Fraud

A former Virginia business owner has pleaded guilty to employment tax fraud, cheating the IRS out of approximately $3.1 million.

Richard E. Moore, of Augusta County, pleaded guilty yesterday to not accounting for and paying employment taxes to the IRS. Moore was the executive vice president and part owner of Nexus Services Inc., a Verona-based company that offered bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement.

According to court documents and statements made in court, Moore was responsible for withholding Social Security, Medicare, and income taxes from Nexus’s employees’ wages and paying those funds over to the IRS. He was also responsible for filing quarterly employment tax returns. However, for many quarters between the first quarter of 2015 and the first quarter of 2024, Moore withheld the funds but did not pay them over to the IRS and did not file the returns.

Moore’s actions resulted in a significant loss to the IRS, totaling approximately $3.1 million. His sentencing will be scheduled for a later date. Moore faces a maximum penalty of five years in prison for each count of failing to pay employment taxes. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorneys William Montague and Matthew Hicks of the Tax Division are prosecuting the case.

Moore’s case serves as a reminder of the importance of paying employment taxes and filing required tax returns. The IRS relies on employers to contribute to the tax system, and failure to do so can result in significant consequences.

Richard E. Moore is currently facing charges for his role in employment tax fraud. His sentencing is pending and will be determined by a federal district court judge.

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