CAMPBELL – A choose on Tuesday sentenced the top of a South Bay house care firm to a 12 months and a day in federal jail for not paying employment taxes to the IRS, prosecutors mentioned.
Shane Brightpath Mike, 53, of Bishop, Calif., pleaded responsible earlier this 12 months to at least one rely of failure to pay over employment tax, based on the U.S. Lawyer’s Workplace.
Mike was the proprietor, president and chief working officer of Excel Behavioral Companies Inc., a Campbell-based enterprise that supplied house care to individuals with disabilities.
Prosecutors mentioned Mike was answerable for withholding Social Safety, Medicare and earnings taxes from his workers’ wages and paying over these funds to the IRS.
Nonetheless, for the third quarter of 2014, Mike solely paid a part of the taxes, and from the fourth quarter of 2014 by the third quarter of 2015, he didn’t pay any of the taxes, based on prosecutors.
In whole, Mike did not pay greater than $1 million in taxes, prosecutors mentioned, including that he additionally used firm funds throughout these 5 quarters to pay his private bills.
In keeping with prosecutors, Mike additionally filed false private earnings tax returns for tax years 2014 and 2015. He claimed credit score for federal tax withholdings from wages he acquired from Excel, figuring out that the withholdings had not been paid to the IRS.
Along with the jail time period, U.S. District Choose Beth Labson Freeman ordered Mike to serve three years of supervised launch and pay $1,177,947 in restitution to the US.
Mike is scheduled to start serving his jail sentence on March 18, prosecutors mentioned.
