Payroll Tax Fraud Indictment – Wisconsin Man Faces Charges and 92 Years In Prison! Ouch!

Daniel D. LaMarch, if convicted, may well spend the rest of his life in prison. The thoughts of dying in prison have to be daunting and LaMarch is facing just that.

A federal grand jury handed down a 20 count indictment against LaMarch for failing to pay over to the Internal Revenue Service payroll taxes that had been withheld from the wages of the employees of Title Services of Green Bay during the period from January 2002 through December 2005. The indictment alleges that during this four-year
period, LaMarch withheld from the wages of the employees of Title Services of Green Bay more than $500,000 in payroll taxes, but that he failed to pay those funds to the IRS, as required by federal law, or to file the quarterly payroll tax returns (Forms 941) that he was required to file reporting the wages, and payroll tax withholdings.

Now, if that’s not bad enough, LaMarch was also indicted on charges of filing false personal tax returns (Form 1040) for he and his wife from 2002 through 2005. According to the indictment, on these returns, LaMarch under reported his income during these four years by more than $500,000 and the he under reported and
under paid his federal taxes by more than $115,000.

Every choice has a consequence. It should be evident by now, regardless of your opinion of the fairness of our tax system, that one cannot avoid filing and paying taxes. Wesley Snipes tried and lost. Sure he was not convicted of fraud, but he was convicted of failing to file and awaits his sentence – which could include prison.

Based on these charges, LaMarch faces up to 92 years in prison and fines of up to $5 million dollars if convicted on all counts.

Chuck Gallagher - The Ethics Expert

As a business ethics and white collar crime speaker, ( I routinely speak to business groups and associations about the Truth About Consequences. It is true…you reap what you sow. In this case, regardless of the motivation, the reality is Daniel D. LaMarch will likely spend many year in federal prison. He will have time to evaluate whether the temporary benefits he might have enjoyed was worth the ultimate costs. Having been there…I can speak from experience. It is not!

Your comments?

3 Responses to Payroll Tax Fraud Indictment – Wisconsin Man Faces Charges and 92 Years In Prison! Ouch!

  1. I received this comment via e-mail. It is shown here without modification:

    The only comment I have to make is I am a former employee (as of 02/14/08). On Thursday, all of us employees were told our jobs were over and done with and to clean up our stuff and leave.

    We were also told we were not getting paid from 02/01/08 thru 02/14/08. Dan told us to try to apply for unemployment since he had no money to pay us.

    I’m sure it’s also going to be coming out that from April 2006 to the present, he would not pay us any overtime. He allowed us to work over 40 hours per week but would only pay us straight time. I don’t know about the other employees, but I know for myself I usually averaged approximately 110 – 115 hours every two weeks. I would get paid straight time, but I would not get paid time and a half for over 80 hours.

    All I can say is I surely never saw this coming. I thought Dan was a very honest person and I still have a very hard time believing this is happening.

  2. Wow…the ripples of choices and consequences. Here’s another posting received by e-mail.

    I also worked extra hours without getting paid the overtime wage. When I would ask for the overtime pay he said straight time would be better than unemployment, wouldn’t it?? And speaking of unemployment, once I calmed down a bit after being let go on Thursday 2/14/08, I called to file for unemployment and was told that my wages had not been reported since the 2nd quarter of 2007. So, it will be another 2 weeks of “processing” paperwork before I would be considered for unemployment. And seeing as we haven’t’ been paid since 1/31/08 it will be a good month before I will receive any compensation.

    I would really like to know if all he did was really worth it?? Did he really think it wasn’t going to affect the lives of many, many people?????

  3. Another comment:

    I also had been a very dedicated employee at Title Services only to find out on Thursday that we were closing, when just hours earlier I was told someone else was going to be taking over!!! When I asked Dan about getting our paychecks I was told “Sorry I don’t have any money” How convienient that he told us this on the last pay day for that 2 week period. It is also laughable when this came out on our local station on Thursay Feb.7th 2008 the next morning Dan claimed he knew nothing about any such charges!!! Now I am no expert in Federal Law but it seems to me Dan would have to be notified if Federal Charges were being filed against him. Now they can also investigate the failure to pay us overtime along with all the other charges. I would also suggest they dig deeper, I have a feeling there is more.

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