Friday, August 01, 2008
Undocumented Workers do no paid taxes.!!!!!! That Sounds familiar to you. A myth or a lie?
Tax evasion is in progress BUT not from Undocumented workers from Citizens!!!!!!.
A U.S. Citizen preventing the IRS from assessing and attempting to collect more than $34 million of unpaid payroll tax liabilities from Trebert, Ewing and May, and creating the appearance that these sham staffing/payroll entities employed more than 4500 nursing facility employees, when they did not. Where Nativists, Minuteman groups, Lou Dobbs, Tommy Tancredo stand on this issue? Hypocrisy is not a Family Value?
FORMER NURSING HOME EXECUTIVE SENTENCED TO 10 YEARS IN FEDERAL PRISON AND ORDERED TO PAY $11 MILLION RESTITUTION
Tarrant County Resident Convicted of Various Offenses Related to Operation of Nursing Homes
FORT WORTH, Texas — Stephen Michael Ewing, 60, of Bedford, Texas, who was convicted of various offenses related to his operation of nursing homes in Texas and elsewhere, was sentenced today by U.S. District Judge Terry R. Means to 120 months in prison, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. In addition, Judge Means ordered that Ewing pay approximately $11 million in restitution. Ewing was ordered to surrender to the Bureau of Prisons on August 25, 2008.
A jury convicted Stephen Michael Ewing in March on one count of conspiracy, seven counts of tax evasion, five counts of mail fraud, seven counts of making false statements to government agencies and seven counts of making false statements regarding health care.
From August 1999 to mid-May 2004, Ewing, along with co-defendants, Gary Trebert and Larry May, conspired together, and with others, to defraud the U.S. by impeding, impairing, obstructing, and defeating the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of the revenue, that is, nursing facility employees’ withheld income taxes, social security taxes and Medicare taxes, and the Department of Health and Human Services (HHS) in the administration of the Social Security Act and the Medicare and Medicaid programs.
Gary Trebert, 51, of Frisco, Texas, a licensed attorney, pled guilty in February 2008 to conspiracy to defraud the government by obstructing and impeding lawful government functions of the IRS and HHS and tax evasion and aiding and abetting. Trebert admitted that in April 2004, he attempted to evade and defeat the assessment and payment of more than $4,113,000 in withholding taxes taken out of employees’ pay at 42 nursing homes he and his coconspirators controlled. While Trebert faces a maximum statutory sentence of 10 years in prison, the government, as part of its his plea agreement, will make a non-binding recommendation that the Court sentence Trebert to an eight-year prison sentence. Trebert also may be ordered to pay restitution which will be based on all his criminal conduct relating to the offenses charged in the indictment, including, but not limited to, unpaid taxes and unlawfully obtained healthcare payments. He is scheduled to be sentenced on August 11, 2008.
Co-defendant Larry Gordon May, 49, of Hurst, Texas, pled guilty to his role in the conspiracy in October 2007. He was sentenced in April to 48 months in prison and is currently serving that sentence.
Ewing and his coconspirators, using the names of sham corporate entities, obtained control of 70 licensed nursing facilities with thousands of patient beds and thousands of employees. In order to acquire control of these facilities, Trebert, Ewing and May used false statements and false and fraudulent documents, including Applications for Nursing Facility License and Medicaid Contracts, Medicare Federal Provider Enrollment applications, ownership documents, IRS Employer Identification Number applications, Health Insurance Benefit Agreements, and Electronic Fund Transfer forms. Their falsifications included falsely identifying relatives as owners, operators, and managers of the nursing homes on the applications; failing to disclose staffing/payroll companies on nursing home applications; failing to disclose Ewing and May as the true owner/operators of nursing homes; and forging names of individuals on filed documents to divert responsibility away from the three defendants. They used the false statements and documents to hide from HHS, state licensing and Medicaid agencies, and the IRS, the true control and management of the nursing facilities, their responsibility for more than $200 million in money derived from the nursing homes, and their responsibility for the nursing facilities’ residents.
Both Trebert and May testified against Ewing at trial. Trebert testified that he and Ewing repeatedly discussed the creation and the overseas payroll companies to interfere with IRS efforts to collect the payroll taxes. Trebert also testified that Ewing once boasted about having previously operated nursing homes without having to pay the payroll taxes. Larry May testified that Trebert and Ewing made him president of the company, even though he told them he was not qualified.
May further testified that, during some of the periods covered by the Indictment, he was making $10,000 to $25,000 per month for doing little more than signing documents, including tax returns, and taking tax returns to England to mail back to the IRS in the U.S. More than 150 sham staffing/payroll entities, many with foreign business addresses at drop boxes in England and Austria, were created to file Form 941 employer withholding tax returns with the IRS, preventing the IRS from assessing and attempting to collect more than $34 million of unpaid payroll tax liabilities from Trebert, Ewing and May, and creating the appearance that these sham staffing/payroll entities employed more than 4500 nursing facility employees, when they did not.
The defendants diverted to themselves and their personal activities substantial sums of money derived from their nursing home operations and from the non-payment of employees’ withheld payroll taxes. At trial, the government presented evidence that, during the period covered by the Indictment, Ewing spent more than $2.5 million in money derived from the nursing home operations on his personal expenses. The total expenditures included more than $200,000 at department stores such as Saks Fifth Avenue, and more than $250,000 on automobiles