Company comptroller sentenced in $20 million wire fraud case

Hauppauge CEO Pleads Guilty To $20M Fraud

Payroll Services comptroller sentenced for wire fraud

The Feds have some serious catch-all charges for most tax cheats: mail fraud and wire fraud. In Sacramento on April 12 of 2013, Kerry Seaman, a resident of Lake Ronkonkoma, N.Y., was sentenced to 44-months in federal prison and ordered to pay $19,141,618 in restitution. Yes! That is $19 Million dollars!

Financial officer defrauds Sacramento for 5 years

Mr. Seaman, the comptroller of a NY a payroll services company, hired by Sacramento County, defrauded Sacramento and the IRS of nearly $20 million dollars. Mr. Seaman pleaded guilty on November 19, 2010 to wire fraud. Court documents show that Seaman was the comptroller for Ingentra HR Services Inc., a payroll services corporation in Hauppauge, N.Y. At that time, Ingentra was known as Humanic Solutions Inc, and was hired in 2004 by Sacramento County to process the the counties’ payroll for Sacramento County’s Special Districts. An integral part of the payroll service, Ingentra was to calculate the tax payments for their clients and the clients’ employees and expected to transmitted the payments to the appropriate state and federal tax authorities.

County of Sacramento – SanDisk (Memory) – Stanley (Tools)

Ingentra was responsible for paying the income tax withholdings to the IRS and to file the Employer’s Quarterly Federal Tax Form (Form 941) with the IRS on behalf of their clients, including Sacramento County. According to court records, from 2005 until April 2010, Seaman and his co-defendant, Albert Cipoletti, defrauded the County of Sacramento Special Districts and two other companies of withholding taxes that were supposed to be forwarded to the IRS. Ingentra DID collect the correct withholding taxes from Sacramento County and the other 2 large private companies: SanDisk Corporation (SanDisk) and The Stanley Works and Stanley Solutions Inc. (Stanley), but then under-reported those taxes to the IRS.

The difference was diverted into Ingentra’s operating bank account for Ingentra’s own use. Seaman and co-defendant Cipoletti sent letters to the clients with the correctly calculated payroll and federal tax withholdings for the clients’ employees, and the clients then wire transferred funds to Ingentra to pay both the payroll and taxes. Thus the federal “wire fraud” charges. Cipoletti and Seaman then filed falsified Forms 941 with the IRS, understating the true employee tax withholdings for those three large clients. In all, Cipoletti and Seaman “wrongfully diverted” almost $20 million dollars in tax withholdings from the clients that should have been forwarded to the IRS.

Sacramento FBI Agent comments on wire fraud case

Drew Parenti, FBI special agent in charge of Sacramento FBI OfficeAccording to the FBI’s website, Drew Parenti, Special Agent in Charge of the Sacramento FBI office, was quoted as saying to the press: “Today’s fraud schemes are more sophisticated than ever, and this case is yet another example of the complex white collar crime cases we continue to see across the nation. The FBI is committed to using our skills and resources, as well as working with our law enforcement partners, to track down the culprits and bring them to justice.”

Are you anxious about something the IRS might frown over?

If you got involved in something by accident or on purpose that might be considered tax fraud, tax evasion, or money laundering, it might be wise to seek confidential legal counsel from a tax attorney. A taxpayers’ attempt to right a wrong will often rectify the worst of circumstances with the best possible outcome when compared to those who wait until an investigation uncovers wrongdoing. By waiting to be “found out,” you are more likely to be charged with a crime and face serious consequences. Call tax lawyer Paul Staley to schedule a no cost, confidential meeting at (619) 235-4095.

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