FORMER SECURITY COMPANY OPERATOR PLEADS GUILTY TO FAILING TO PAY EMPLOYMENT TAXES

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, May 12, 2015

Former Security Company Operator Pleads Guilty to Failing to Pay Employment Taxes

A Temple Hills, Maryland, resident who operated a company that provided security guards to private businesses and apartment complexes pleaded guilty today in the U.S. District Court for the District of Columbia to failing to file employment tax returns and pay over approximately $600,000 in employment taxes to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.

Jeffrey Norman Jackson operated Innovative Security Services LLC in Washington, D.C., between 2005 and 2009, according to court documents.  Jackson controlled the business’s finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns (IRS Forms 941) and paying over to the IRS the business’ federal income, social security and Medicare taxes (known as FICA taxes) that were withheld from the wages of Innovative’s employees.  For more than four years, Jackson willfully failed to comply with these legal obligations.  He used the stolen funds to pay personal expenses, such as rent and gym membership fees.

The plea agreement requires Jackson to pay $595,687.39 in restitution to the IRS for the taxes due and owing.  He faces a statutory maximum sentence of five years in prison and a $250,000 fine when he is sentenced on July 27.

Acting Deputy Assistant Attorney General Wszalek commended the special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Melissa S. Siskind of the Tax Division, who is prosecuting the case.  Wszalek also thanked the U.S. Attorney’s Office of the District of Columbia for their assistance.