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

October 16, 2008

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!


Dan LaMarch – Wisconsin Payroll Tax Fraud – The Consequences Have Just Begun!

February 16, 2008

Just the other day, I posted a blog about the fraud associated with Daniel D. LaMarch. Since then this has become one of the most read posts. I began to wonder why…then the e-mails began. People wanted to be heard as they had lost their job and, my words, “been screwed” as employees of LaMarch.

Here are two of the comments I received just today via e-mail:

Comment One:

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.
Comments Two: 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?????
Every choice has a consequence. As a business ethics and white collar crime speaker, (www.chuckgallagher.com) I see the effects of choices everyday. What often goes unnoticed is the effect that choices have on others. These two comments – from very real people – got a rude awakening on valentines day 2008. There was no love here. The consequences that are being felt are felt by people who are hurting from LaMarch’s choices and actions. Likely, they will produce in the victims – anger, hostility, sadness, panic, worry and who knows what else.
As we make choices daily, it is critical to consider the consequences that our choices will cause. Consequences don’t always mean “bad” – as I’ve experienced from positive choices extraordinarily positive results.
As for Daniel D. LaMarch, if convicted, he 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.

For the victims…during this time on emotional trauma, be careful of the choices you make. Choices founded out of anger and vengeance will not produce positive results. Make your choices wisely and focus on rebuilding. Remember positive choices do yield great outcomes.


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

February 13, 2008

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, (www.chuckgallagher.com) 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?


A Twenty Dollar Heist Could Net 9 1/2 Years – How’s That For Dumb Luck?

January 6, 2008

Chuck Gallagher, Ethics Speaker

As a motivational speaker focusing on ethics I tend to run across all kind of stories, but this one ranks as one of the most odd. It seems that a man has been charged with felony burglary after his DNA linked him a $20 robbery. The robbery occurred on August 10, 2007 in Sheboygan Falls, WI.

Seems that Ryan A. Mueller slipped into the bedroom of a 2 year old girl and, while she slept, he proceeded to shake her “piggy bank” lose of it’s change. Apparently some $20 worth. The girls mother saw the light on in her daughters room and when she turned the light on she saw the man shaking the piggy bank. The man fled before the police arrived, but apparently cut himself as he forced his entry into the home. That blood evidence was sufficient to link Mueller to the crime.

The penalty for robbing a piggy bank – up to 9 1/2 years in prison.

Somehow that isn’t a good return on his effort.

Every choice has a consequence. No doubt this wasn’t his first burglary. If it was, he really has some crazy bad luck. Reality is, you will reap what you sow. In his case what he accomplished was paying a potentially hefty price for a stupid choice. But then again, who am I to talk about choices as I paid a high price myself.

The one lesson learned (of many I might add) is that consequence aren’t all bad. From your choices you can have negative consequences or positive results. I’ve had both and today I speak to groups nation wide about ethical choices and positive consequences that can result. http://www.chuckgallagher.com

For more information on my presentation visit my web site above and request one of my promotional DVD’s. I’d love to hear from you.