DENVER – 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 43, of Lone Tree, Colorado, was sentenced today by U.S. District Court Judge Wiley Y. Daniel to serve 18 months in federal prison for failing to collect and pay federal taxes. RAJPUT had previously paid approximately $260,000 in restitution to the IRS. The court today ordered him to pay additional restitution in the amount of $868,980 to the IRS. Judge Daniel instructed RAJPUT to report to a facility designated by the Bureau of Prisons within 15 days after the Bureau desginates a prison facility.
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 quarters in fiscal years 2002 and 2003. The tax loss to the United States totals over $1.1 million. 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.
“This case should put employers on notice that they could be held criminally liable for failing to pay employees’ and employer’s portions of federal tax withholdings,” said US Attorney Troy Eid.
“Our mission at the IRS is to aply the tax law with integrity and fairness to all”, said Terry L. Stuart, Special Agent in Charge of the Denver Field Office. “That means that all taxpayers should pay their fair share,” Stuart said.
The case was investigated by the IRS-Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorney Matthew Kirsch.List your legal jobs on the LawFuel Network