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Home > Blogs > Dayton Courts: Legal and crime news > Archives > 2010 > February > 17
Wednesday, February 17, 2010
Former Paysource CEO pleads guilty to tax charge
DAYTON — A former Paysource executive who avoided paying $7 million in taxes to the Internal Revenue Service during the second half of 2007 pleaded guilty Wednesday, Feb. 17 to one count of willfully aiding and assisting in the preparation of a fraudulent federal employment tax return.
Charles C. Painter, 60, of Dayton, appeared before U.S. District Judge Michael R. Barrett. Painter faces a maximum prison sentence of three years and a maximum fine of $250,000.
Painter was employed as the CEO and president of Paysource Inc., Paysource II Inc., Paysource III, Inc., Paysource IV, Inc., Paysource V, Inc., and Paysource VI Inc., all of Dayton.
Painter’s corporate tax return for the third quarter of 2007 fraudulently stated that Paysource II Inc. paid employees wages of $2.4 million, incurring a tax liability of $603,532. The company actually paid $6.6 million and incurred a tax liability of $1.7 million.
Painter was well aware this tax return underreported Paysource II, Inc.’s taxable income, according to Carter M. Stewart, U.S. Attorney for the Southern District of Ohio.
Painter also filed other fraudulent forms for other Paysource companies for the third and fourth quarters of 2007, Stewart said. The total tax loss to the IRS for the period covering the third and fourth quarters of calendar year 2007 was at least $7 million, Stewart said.
The case was investigated by special agents of IRS-Criminal Investigation.
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Xenia man convicted of federal tax charge
DAYTON — A Xenia man pleaded guilty on Wednesday, Feb. 17, to one count of willfully filing a fraudulent federal income tax return with the Internal Revenue Service.
William Thurman II, 43, failed to report the commissions earned from the sale of investment opportunities as income on his federal income tax return, according to Carter M. Stewart, U.S. attorney for the Southern District of Ohio.
U.S. District Judge Thomas M. Rose set sentencing for April 29. Thurman faces a maximum prison sentence of 3 years and a fine of $100,000.
Between 2001 and 2005, Thurman sold investment opportunities in a series of business ventures, including Advance Process Technologies, New Process Technologies and Armadillo Oil, to southern Ohio residents, according to court documents. He received commissions for each sale.
Thurman failed to report the income that he had generated from these commissions on his 2001 through 2005 federal income tax returns.
Under the plea agreement, Thurman agreed to: — file complete and accurate amended federal income tax returns — to fully cooperate with the IRS in order to determine, calculate, and pay all income taxes, interest, and penalties due and owing to the IRS.
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