Business Owners Sentenced to Prison for Failing to Pay Taxes to IRS
LAREDO, TX—Jorge Montemayor and Leticia Reyna have been ordered to prison for their convictions of failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson. Montemayor and Reyna pleaded guilty January 24, 2014 and November 18, 2013, respectively.
Today, U.S. District Judge Andrew Hanen handed Montemayor a sentence of 30 months in federal prison, while Reyna will serve a 15-month term. Montemayor was ordered to pay restitution in the amount of $368,025.84, while Reyna was ordered to pay $48,562.44. Both must serve a period of supervised release following their release from prison and must perform community service.
Montemayor was the chief financial officer (CFO) of GDM Home Health Inc., and Reyna was the president of Professional Skilled Services Inc., both home health care business that provided basic skilled care in Laredo. In their roles, both had authority to conduct financial transactions and exercised signatory authority on the company’s bank accounts.
As part of the plea, Montemayor admitted he knowingly and willfully failed to pay approximately $368,025.84 of federal income and FICA and Medicare taxes withheld from the taxable employee wages from the year 2008, while Reyna admitted she failed to pay over to the IRS approximately $48,562.44 for the fourth quarter of 2008.
Both admitted that had different business expenses and personal choices been made, funds would have been available to pay these taxes. In his plea agreement, Montemayor admitted that corporate funds were used for lavish trips to Europe and Las Vegas, sporting events, restaurants, jewelry, and real estate. Specifically, Montemayor agreed that between August and November 2008, GDM Home Health spent $46,548.75 on basketball tickets for the San Antonio Spurs and purchased season tickets for the Laredo Bucks hockey team. He also stated he provided local politicians and doctors tickets to attend these professional sporting events. In her agreement, Reyna admitted that corporate funds were used for shopping, restaurants and private school expenses.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by IRS-Criminal Investigation and FBI. Assistant United States Attorneys Elizabeth R. Rabe and Charles Escher are prosecuting the case.