15 December 2004 – LAWFUEL – First with law news – The United States Attorney’s Office for the Northern District of California and the Internal Revenue Service Criminal Investigation Division announced that David Lopez Quintana of Pleasanton, California, appeared in court today based on a sixteen count indictment. Mr. Quintana is charged with eight counts of willful failure to account for and pay over withheld payroll taxes and eight counts of payroll tax evasion.
Mr. Quintana is charged with eight counts of failing to pay the IRS a total of $421,987 in taxes that he withheld from his employees’ wages. According to the indictment, Mr. Quintana was a resident of Danville, California from 1998 to 2000, and was the president for TCCG, Inc., a corporation and holding company for Progressive Auto Stereo, OCCG, Inc., Bayfair Auto Stereo, Car Stereo Warehouse and San Leandro based Beeper City. Federal law requires that employers collect, account for, and pay over payroll taxes withheld on behalf of their employees. These taxes include both federal income taxes and Federal Insurance Contribution Act (FICA) taxes (Social Security and Medicare taxes).
Federal law also requires that employers pay a share of FICA taxes. The indictment includes eight charges that between April 15, 1999 and April 15, 2001, Mr. Quintana attempted to evade the employer’s share of FICA taxes in the aggregate amount of $251,025. Among other things, Quintana allegedly provided false W-2 forms to his employees, transferred funds from corporate bank accounts to his personal accounts to conceal taxable income, and purchased a home in Pleasanton, California, using a nominee name to conceal his ownership interest, all to evade the taxes he owed.
Mr. Quintana was arraigned today and entered a not guilty plea before Magistrate Judge Wayne D. Brazil in Oakland. Quintana was released on his own recognizance. His next scheduled court appearance is before United States District Court Judge Claudia Wilken on January 10, 2005 at 2 p.m.
The maximum statutory penalty for payroll tax evasion, in violation of 26 U.S.C. Section 7201 is five years in prison, three years of supervised release, and a fine of $100,000. The maximum statutory penalty for violation of willful failure to account for and pay over withheld payroll taxes, in violation of 26 U.S.C. Section 7202 is five years in prison, three years of supervised release, and a fine of $10,000. However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed at the discretion of the court. An indictment only contains allegations against an individual. As with all defendants, Mr. Quintana is presumed innocent unless and until convicted.
The investigation was conducted by special agents of the Internal Revenue Service – Criminal Investigation division. Kimberly Briggs is the Assistant U.S. Attorney who is prosecuting the case.
A copy of this press release and related court filings may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can . Related court documents and information may be found on the U.S. District Court website at www.cand.uscourts.gov or on .
All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at Luke.Macaulay3@usdoj.gov .