Fraudulent Operation

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53449333 - doctor's scrub top with stethoscope and one hundred dollar bill

Business owners are responsible for paying a variety of taxes for each employee. This is usually done over four installments during the tax year. An article in the Times of Northwest Indiana reports that an ear, nose and throat surgeon collected the appropriate taxes from his employees’ paychecks; however, he neglected to pay employment taxes to the Internal Revenue Service (IRS). (They’ll never notice.)

The story states that the doctor did not file his quarterly employment tax returns for 11 tax quarters. Over that period of time, he collected nearly $64,000 in federal income and employment taxes from his employees.

The 56-year-old doctor pleaded guilty to one count of failing to account for, collect and pay employment taxes. He was sentenced to one year and a day in prison and was ordered to pay more than $541,000 in restitution to the IRS.

The article doesn’t state the doctor’s motive for neglecting to file and pay the employment taxes. We can only speculate why he turned to crime to supplement his income. (Maybe it was a light flu season?) Thanks to the IRS Criminal Investigation Division, this fraudulent operation has been shut down.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”S’ville Surgeon Sentenced to Year in Prison for Tax Fraud,” written by Jim Masters and published in the Times of Northwest Indiana on April 11, 2014.

HAMMOND – A Schererville doctor has received a year and a day in prison for failing to collect and pay employment taxes to the federal government, the U.S. Department of Justice announced Friday.

Ronald Eugene Jamerson, 56, also was ordered to pay $541,083 in restitution to the Internal Revenue Service, which represents the total tax loss owed for all tax periods from 2003 through 2008.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.