Health Care Executive, Donald O’Connor Ramsey Sentenced to More Than 3 Years for Defrauding the IRS
(STL.News) A health care executive was sentenced to 37 months in federal prison and ordered to pay more than $3.4 million in restitution for defrauding the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Donald O’Connor Ramsey, 72, pleaded guilty to failure to pay over withholding and FICA taxes in February 2020. Mr. Ramsey was sentenced yesterday afternoon before U.S. District Judge Sam A. Lindsay.
“Individuals and businesses that willfully fail to pay their tax obligations harm all Americans,” said Acting U.S. Attorney Shah. “The Department of Justice is committed to aggressively prosecuting those individuals who seek to circumvent U.S. tax laws.”
“I’m proud of our agent’s hard work in this investigation . This defendant ‘knowingly and willingly’ took money from his employees and failed to remit these payroll taxes to the government” said Acting Special Agent in Charge Mark Pearson, Dallas Field Office. “Mr. Ramsey’s punishment reflects the consequence of not paying taxes in a truthful and timely manner and the importance of the continued partnership between the U.S. Attorney’s Office for the Northern District of Texas and the IRS Criminal Investigation in the pursuit of these criminals.”
According to court documents, Mr. Ramsey, owner and chief financial officer of Community Care Medical (CCM) and Medical Case Management & Social Services (MCM), failed to pay employment taxes to the IRS from 2013 to 2018.
Mr. Ramsey directed CCM and MCM to withhold taxes from its employee’s paychecks, including income, Medicare, and Social Security taxes.
Both companies were required to make deposits of the payroll taxes to the IRS on a periodic basis. In addition, CCM and MCM were required to file an Employer’s Quarterly Federal Income Tax Return (From 941) which includes the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of Social Security and Medicare taxes due, and the total tax deposits.
From 2013 to 2018, Mr. Ramsey failed to regularly file quarterly returns with the IRS, while continuing to withhold his employees’ salaries.
Mr. Ramsey conduct resulted in a tax loss of approximately $1.9 million to the IRS.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Nicholas Bunch prosecuted the case.