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Press Release

Greenbrier County business owner sentenced to federal prison for failing to pay employment taxes

For Immediate Release
U.S. Attorney's Office, Southern District of West Virginia
Defendant ordered to pay over $630,000 in restitution to the IRS

BECKLEY, W.Va. – A Greenbrier County man was sentenced today to two years in prison for a federal tax crime, announced United States Attorney Carol Casto. Brandon J. Black, 32, of Maxwelton, previously pleaded guilty to failing to pay employment taxes. He was also ordered to pay $632,583.18 in restitution to the Internal Revenue Service.

Black owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia. The business underwent name changes, initially beginning as Professional Security Services and then operating as CLB Security as of 2014. Black admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Social Security and Medicare taxes that were withheld from the wages of employees. Black further admitted that between January 2010 and June 2015, he withheld over $400,000 from employee paychecks and failed to pay over the money to the IRS. He also admitted that he failed to pay over more than $230,000 to account for his share of additional taxes as an employer. Black admitted that the total tax loss for his criminal conduct is over $630,000, and he also admitted that he owes that same amount to the IRS as restitution.

This case was investigated by agents of the IRS – Criminal Investigation Division, the FBI, and the West Virginia Office of the Insurance Commissioner – Fraud Unit. Assistant United States Attorney Eric Bacaj is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.

Updated February 13, 2017

Topic
Tax