Some employers put entirely unreasonable expectations on their staffs. A recent report by The State Journal-Register details such a case, in which a café owner looking to fudge his business tax numbers coerced his employees into registering the restaurant under their own names. (Exploiting either their fear or their lack of understanding of his criminal intentions.)
Apparently, this café crook’s own business tax number already had been revoked for his failure to pay previous taxes. (“No soup for you!”) So he began reporting sales under former and current employees’ business tax numbers, in his ongoing attempt to skip out on $40,000 in tax payments. Even worse is that he allegedly stole the Social Security number of a disabled former employee, which he fraudulently used to open a utility account.
Luckily, the government caught up with him and made crystal clear the unacceptable nature of his crimes. So unacceptable, in fact, that even though he pleaded guilty to one count each of two felonies (aggravated identity theft and sales tax evasion), he was sentenced to three years in prison. Additionally, he was ordered to pay $44,934 in restitution (check, please!) to the Illinois Department of Revenue and another $2,030 to Ameren Illinois, the utility company that he had defrauded using the disabled employee’s personal information.
It is ironic and counterintuitive for a business owner to disregard the grounds on which he is expected to pay taxes. (What happens to his livelihood if he doesn’t have clean water or trash service?) This particular offender demonstrated an ongoing disrespect for the fundamental responsibilities and privileges that keep alive our economy. He also abused his position of power over his (presumably hourly) employees, including a disabled one who no longer even worked for him. Kudos to the state of Illinois for taking fraud off the menu.
The post A ‘Cozy’ Crime appeared first on Fraud of the Day.