San Antonio Businessman Pleads Guilty to Role in $133 Million Real Dollar Loss Fraud and Tax Case
|U.S. Attorney’s Office November 21, 2013|
In San Antonio this morning, 61-year-old businessman Charles Pircher pleaded guilty to his role in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas, announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and IRS-Criminal Investigation Special Agent in Charge Steve McCullough.
“This was a wide ranging and complex scheme, whose simple purpose was to steal money from company payroll by diverting tax and insurance payments all for personal enrichment. Pircher cheated clients and the taxpayers for years,” stated United States Attorney Robert Pitman.
Appearing before United States Chief District Judge Fred Biery, Pircher pleaded guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge. According to the factual basis filed in this case, from 2002 to 2008, Pircher managed a series of professional employer organizations (PEOs) based in San Antonio, including Service Professionals, which entered into staff leasing agreements with various client companies to manage their payroll and insurance programs. By pleading guilty, Pircher admitted that he and other co-conspirators stole more than $133 million directly from their client companies’ programs.
Pircher faces up to 20 years in federal prison on the mail fraud conspiracy charge and up to five years in federal prison on the Kline tax fraud conspiracy charge. Sentencing has yet to be scheduled.
This investigation, conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, has resulted in guilty pleas by five defendants—Pircher; John D. Walker, II; John Bean; Mike Solis; and Pat Mire. A sixth defendant, San Antonio businessman Larry W. Kimes, is scheduled for jury selection and trial on January 23, 2014. Kimes is charged by federal grand jury indictment with one count of Klein tax fraud conspiracy, two counts of mail fraud conspiracy, one count of money laundering conspiracy, and one substantive count of money laundering.
Assistant United States Attorney Thomas J. McHugh is prosecuting this case on behalf of the government.