A Maryland telecommunications executive was convicted Tuesday of failing to pay over $1 million in employee payroll taxes to the federal government.
B.H. of Parkton and Berlin was found guilty on 16 counts of failing to collect and pay over payroll taxes after a federal jury trial. B.H. served as CEO of two telecommunications companies during the period of the violations.
According to evidence presented at trial, B.H. withheld federal income, Social Security and Medicare taxes from employee paychecks between mid-2016 and late 2018 but never remitted these funds to the government as required by law.
Diverted funds for personal use
Prosecutors demonstrated that instead of forwarding the withheld taxes to the Internal Revenue Service, B.H. diverted the money to pay himself a salary and cover other business expenses.
The tax evasion scheme continued for over two years while B.H. also failed to file quarterly tax returns or pay the employer’s matching share of Social Security and Medicare taxes.
Faces substantial prison time
B.H. could receive up to five years in federal prison for each of the 16 counts, though his actual sentence will be determined by a federal judge after considering sentencing guidelines and other factors.
The Justice Department has not announced a sentencing date.
Acting Deputy Assistant Attorney General Karen E. Kelly announced the conviction, which resulted from an IRS Criminal Investigation. The case was prosecuted by Tax Division Trial Attorneys Shawn T. Noud and Catriona M. Coppler.
