Youngstown doctor William J. Houser Jr., 59, of Wexford, Pennsylvania, has been slapped with five years’ probation after pleading guilty to willfully failing to pay over federal taxes, the Department of Justice announced. The verdict, handed down by U.S. District Judge Joy Flowers Conti, marks the end of a years-long scheme that bled the IRS of nearly $900,000 in unpaid employment and personal income taxes.
Houser, a licensed medical practitioner operating across state lines in Ohio and Pennsylvania, was responsible for withholding trust fund taxes from employee paychecks — covering income, Social Security, and Medicare — and remitting them quarterly to the IRS. Instead, from September 2009 through December 2014, he pocketed the funds. He also skipped out on paying matching employer contributions, known as employment taxes, turning a blind eye to his legal obligations while continuing to run his practice.
In addition to the business-related fraud, Houser failed to file personal income tax returns for five consecutive years — 2010 through 2014 — compounding the damage. The total tax loss to the federal government topped $899,269. As part of his sentence, he’s now on the hook for $1,128,660 in restitution to the IRS — a figure that includes penalties and interest accrued over the years of noncompliance.
The court imposed strict conditions on Houser’s probation: the first 24 weekends must be served in a community confinement center, along with one full week each year for the duration of the five-year term. The sentence sends a clear message — even professionals behind white coats aren’t above the law when it comes to financial crimes.
Assistant U.S. Attorney Carolyn J. Bloch, who prosecuted the case, emphasized that trust fund tax evasion is not a victimless crime. Employees who had taxes withheld from their wages were left exposed to IRS penalties because those funds were never sent in. The IRS conducts hundreds of these prosecutions annually, but few involve licensed medical professionals abusing payroll systems so brazenly.
The Internal Revenue Service’s Criminal Investigation division led the probe that eventually brought Houser to justice. Authorities say the case underscores the federal government’s ongoing crackdown on tax cheats — especially those in positions of public trust. For Houser, the cost of silence and theft has finally come due.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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