Beware – $181 Million Payroll Tax Fraud

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Beware – $181 Million Payroll Tax Fraud

Orlando, Florida – United States Attorney A. Brian Albritton announces that U.S. District Judge John Antoon, II, today sentenced Frank L. Amodeo (age 48, of Orlando) to 22 years and six months in federal prison for conspiring to commit wire fraud, to obstruct an agency proceeding, and to impede the Internal Revenue Service (IRS); failing to remit payroll taxes; and obstructing of an agency proceeding. The Court ordered Amodeo to forfeit more than million seized from various accounts, three homes, several luxury automobiles, commercial real estate, a Lear Jet and his corporations.

The Court also imposed a money judgment of approximately $181 million, which is amount of the stolen payroll tax funds. Amodeo had pleaded guilty on September 23, 2008.

According to court documents, Amodeo, and his co-conspirators controlled several companies, including multiple employee leasing companies or PEOs (professional employee organizations). They conspired to absolve themselves and the companies they controlled of the responsibility for existing payroll tax liabilities and to divert payroll tax funds paid by the PEO clients to the PEOs that Amodeo and his co-conspirators controlled.

A number of companies that Amodeo and his co-conspirators controlled played a part in the scheme, they included Mirabilis Ventures (Mirabilis) and affiliates of Mirabilis, AEM, AQMI Strategy Corporation, Common Paymaster Corporation, Nexia Strategy Corporation, Presidion Corporation, Presidion Solutions, Wellington Capital Group, and various other companies.

During an IRS attempt to ascertain and collect the payroll taxes, Amodeo intentionally misled the IRS concerning the unpaid payroll taxes, which allowed the unpaid payroll taxes to increase to significant amounts.

Amodeo also knowingly failed to pay approximately $181 million in payroll taxes, including approximately $129 million in FICA and withholding taxes.

This case was investigated by the Internal Revenue Service.

It was prosecuted by Assistant United States Attorneys I. Randall Gold and Anita Cream.