Business Owner Admits to Failing to Pay Taxes to IRS
|U.S. Attorney’s Office January 24, 2014|
LAREDO, TX—Jorge Montemayor has entered a plea of guilty to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson.
According to the written plea agreement filed in the record of the case, Montemayor was the chief financial officer (CFO) and one of the initial owners of a home health care business that provided basic skilled care. He acknowledged that in his role as CFO, he had authority to conduct financial transactions on behalf of GDM Home Health Inc. and exercised signatory authority on the company’s bank accounts.
The indictment had alleged Montemayor was required to pay over employment taxes to the United States, which include federal income tax, Social Security, and Medicare taxes. As part of the plea, Montemayor admitted he knowingly and willfully failed to pay over to the IRS approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of GDM Home Health Inc. for 2008. Montemayor admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
He faces a statutory maximum penalty of five years in prison and a $250,000 fine at a sentencing date yet to be determined. He was permitted to remain on bond pending that hearing.
The investigation resulting in the charges against Montemayor was conducted by IRS-Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.