⏱ 2 min read
Michael D. Funovits, a 51-year-old businessman from Butler, Pennsylvania, has been sentenced to three years of probation for willfully failing to pay employment taxes for his two businesses, PennRo Associates LLC and Penn Exteriors LLC, between 2016 and 2023. Funovits collected payroll taxes on behalf of his businesses but failed to pay them over to the Internal Revenue Service. The scheme resulted in a significant loss of $711,253.10 to the IRS.
Funovits’ sentence was imposed by United States District Judge William S. Stickman IV. In addition to probation, Funovits was ordered to pay restitution of $711,253.10 to the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Gregory C. Melucci.
The investigation was led by the Internal Revenue Service–Criminal Investigation, which has been working to combat tax fraud and other financial crimes. The Department of Justice has also announced the creation of the National Fraud Enforcement Division, which aims to investigate and prosecute those who commit fraud against the American people.
The sentence serves as a reminder that employment tax fraud can have serious consequences for individuals and businesses. The IRS and other law enforcement agencies are actively working to detect and prevent such crimes, and those found guilty can face significant penalties, including fines and restitution.
📋 Key Facts
- Crime: White Collar Crime
- Defendant: Pennsylvania
- Location: PA
- Source: DOJ Press Release
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