Dan LaMarch Payroll Tax Fraud – Plea Agreement – Prison and Restitution in the Future!

Some one following this case, which I reported on back in February 2008, provided me with a copy of the plea agreement.  If you would like a complete copy e-mail me at chuck@chuckgallagher.com.

As a business ethics and fraud prevention speaker, I have had several folks ask just what the punishment would be for such a crime.  Below are reprints from the plea agreement.  Keep in mind, the judge is not bound by the agreement, so he/she would have the authority to make a decision other than what the US Attorney and LaMarch have agreed to.

The relevant provision are as follows:

The parties understand and agree that the offenses to which the defendant will enter a plea of guilty carry the following maximum term of imprisonment and fine: Count 6 (failing to pay over payroll taxes), five (5) years and $250,000; Count 17 (filing a false tax return), three (3) years and $250,000; and Information (wire fraud), twenty (20) years and $250,000. Each count also carries a mandatory special assessment of$100 and a maximum term of supervised release to follow any term of confinement of up to three years. The parties further recognize that a restitution order may be entered by the court.

A total of 28 years according to the agreement is possible, with the likely hood that LaMarch will serve the terms concurrently – meaning that he will likely get 20 years in federal prison plus restitution.

According to the Green Bay Press Gazette:

Daniel LaMarch, 55, who, along with his wife, Kay, owns Title Service of Green Bay, was initially indicted in U.S. District Court on 20 counts of failing to pay payroll taxes and filing false tax returns.

Federal prosecutors alleged that LaMarch withheld from his business’ employees’ wages more than $500,000 that he was supposed to pay the Internal Revenue Service from January 2002 to December 2005.

Initial charges could have had LaMarch facing up to 92 years in prison.  28 is less, but not insubstantial.  he faces sentencing on January 14, 2009.

Your comments are welcome!


One Response to Dan LaMarch Payroll Tax Fraud – Plea Agreement – Prison and Restitution in the Future!

  1. real estate tax attorney says:

    Entertaining page. My family and I were just talking about this the other evening. Also your page looks great on my old laptop. And thats rare. Nice work.

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