DENVER – LAWFUEL – Law News, Law Jobs – Troy A. Eid, United States Attorney for the District of Colorado, and Terry L. Stuart, Special Agent In Charge of the IRS-Criminal Investigation, Denver Field Office, announced that FERREN S. RAJPUT, age 42, of Lone Tree, Colorado, pled guilty today before U.S. District Court Judge Wiley Y. Daniel to failing to collect and pay taxes on behalf of his employees, and for failure to pay employer taxes. RAJPUT is scheduled to be sentenced on XXXXXXXX by Judge Daniel. RAJPUT waived his right to indictment, and was charged by Information on September 27, 2006.
According to the stipulated facts contained in the plea agreement, in December 2000, RAJPUT formed a mortgage brokerage company called Altus Financial, Inc (Altus). RAJPUT was the President, Treasurer, and sole shareholder of Altus. Immediately before RAJPUT formed Altus, he had been the President and CEO of Equitex Consulting Corporation and had handled the finances, bookkeeping, and accounting for Equitex. When the defendant left Equitex, it had accumulated approximately $285,000 in federal tax liabilities based on its failure to pay over employment taxes withheld from its employees. Once at Altus, RAJPUT willfully failed to pay over both the employees’ and employer’s portions of Federal Income Tax Withholding, Social Security, and Medicare taxes for seven fiscal quarters in 2002 and 2003. The tax loss to the United States totals over $1.1 million.
“Paying taxes is a critical and fundamental part of being a responsible citizen in our society,” United States Attorney Troy Eid said. “Thanks to Special Agents with Internal Revenue Service’s Criminal Investigation, an individual whose company was earning a large amount of money is now being held accountable for not paying taxes.”
“Business practices like these are not acceptable and individuals who evade their tax obligations will be held accountable,” commented Terry L. Stuart, Special Agent in Charge of the Denver Field Office. “Our mission at the IRS is to apply the tax law with integrity and fairness to all. That means that all taxpayers should pay their fair share.”
RAJPUT faces up to 5 years in federal prison, and not more than a $250,000 fine for failing to truthfully collect, account for, and pay over tax. He also faces up to 1 year in prison, and not more than a $100,000 fine for failing to pay tax. As part of the plea agreement, RAJPUT agrees to be liable for restitution in the amount of the outstanding tax liabilities related to Altus Financial.
The case was investigated by the IRS-Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorney Matthew Kirsch.