NEWS RELEASE SUMMARY – April 14, 2010
United States Attorney Karen P. Hewitt announced that Anthony S. Vacchi, Jr. pled guilty today to a felony charge of willful failure to collect and pay tax, in violation of Title 26, United States Code, Section
7202, before United States Magistrate Judge Cathy A. Bencivengo. The plea is subject to final acceptance
by United States District Court Judge William Q. Hayes before or at the time of sentencing.
According to court documents, Vacchi served as Managing General Partner and the Tax Matters Partner for Healthcare Reimbursement Associates (“HRA”), a partnership located in San Diego, California.
Additionally, Vacchi served as President and Chief Executive Officer for HRA Medical Management Inc. (“HRA Management”.) HRA and HRA Management were created to provide medical billing services.
Beginning about September 15, 1993 and continuing through at least December 2006, HRA and HRA Management withheld federal taxes from their employees’ pay checks, including the Federal Income Tax Withheld (“FITW”) and Federal Insurance Contributions Act (“FICA”) taxes. Due to the positions he held at HRA and HRA Management, Vacchi had a duty under Title 26 to collect, account for, and pay over federal taxes withheld by HRA and HRA Management. In his plea, Vacchi admitted that he willfully and knowingly failed to pay over any of the federal taxes withheld by HRA and HRA Management. As a result of Vacchi’s conduct, the total federal FITW and FICA tax loss was $2,502,916.17.
United States Attorney Hewitt noted, “It is a basic obligation of all citizens, whether corporate or individual, to pay federal taxes as required by law.”
“The integrity of our tax system is dependent upon individuals who file timely and accurately, and who pay their fair share in taxes,” said Catherine D. Tucker, Acting Special Agent in Charge, IRS-Criminal Investigation for the Los Angeles Field Office. “It is a serious breach in our tax system if an employer, who is trusted to withhold and pay their employees taxes to the IRS, intentionally keeps these funds for their personal financial gain. The American public should be reminded that those individuals who violate our tax laws will be prosecuted.” Vacchi is scheduled to appear before United States District Judge Hayes for sentencing on July 16,
2010 at 9:00 a.m.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation.
DEFENDANT Criminal Case No. 10CR1334-WQH
Anthony S. Vacchi, Jr. Age: 59
SUMMARY OF CHARGES
Title 26, United States Code, Section 7202 (Willful Failure to Collect and Pay Over Tax) Maximum Penalties: 5 years’ incarceration; a maximum $250,000 fine, or twice the gross gain or
gross loss resulting from the offense, whichever is greatest; three years of supervised release.
Internal Revenue Service – Criminal Investigation