TODAY'S PAPER
56° Good Morning
56° Good Morning
Business

LI man pleads guilty to failing to pay IRS almost $700,000

The man, who operated a temporary employment agency, withheld the money from employees' wages but failed to transfer it to the IRS, prosecutors said. 

An Aquebogue man pleaded guilty to failing to pay the IRS almost $700,000 in withholding taxes for his employees, the Justice Department said.

Scott M. Warner, who operated a temporary employment agency in Bohemia that did business under several names, faces a maximum of five years in prison and supervised release as well as restitution and monetary penalties.

Warner entered the plea Wednesday in U.S. District Court in Central Islip. In court papers he acknowledged collecting taxable wages from his employees between Oct. 1, 2012 and Dec. 31, 2016, and failing to transfer that money to the IRS.

The $687,480 should have been withheld to cover the employees' federal income tax, Social Security and Medicare.

Warner's attorney, Edward P. Jenks, a Mineola criminal defense lawyer, said his 73-year-old client was competing against larger employment agencies and "made a whole host of bad business decisions."

Warner's temporary employment agency operated under various names, including Around the Clock Staffing Inc., Your Staffing Service Inc., Your Staffing Services Inc., Revlis Consulting Corp. and City Consulting Corp.

Jenks said Warner's business had as many as 400 employees.

The plea follows about three years of negotiations, Jenks said, adding that he expects Warner to be sentenced in the spring.

The inquiry was conducted by agents of the IRS Criminal Investigation unit.

Comments

We're revamping our Comments section. Learn more and share your input.

More news