Acting United States Attorney Ellison C. Travis announced the conviction of Benjamin Thomas, III, a 52-year-old resident of Hammond, Louisiana. A federal jury found Thomas guilty on five counts of failing to truthfully account for and pay over federal trust fund taxes. The trial lasted three days and was presided over by U.S. District Judge Brian A. Jackson.
Thomas owned and operated Lighthouse Community Care, Inc., a mental health services clinic in Baton Rouge, Louisiana, since around 2013. As his business grew, he expanded across Louisiana with more than 100 employees. Despite withholding federal income, Social Security, and Medicare taxes from employee paychecks as required by law, Thomas failed to file quarterly employment tax returns on time and did not remit the withheld funds to the IRS for specific periods in 2017 and 2018.
The IRS communicated repeatedly with Thomas about his obligations through notices, calls, and an interview. However, evidence showed that he diverted significant amounts of company funds for personal use instead of paying the taxes owed.
“The defendant willfully failed to satisfy one of the most fundamental obligations business owners face – to truthfully account for and pay over the federal income, Social Security, and Medicare taxes that they withhold from their employees’ paychecks,” said Acting United States Attorney Travis.
“Employees expect their employers to turn over the employment taxes that are taken out of their paychecks to fund future Social Security and Medicare benefits,” stated Special Agent in Charge Demetrius Hardeman from IRS Criminal Investigation’s Atlanta Field Office.
The investigation was conducted by the Internal Revenue Service’s Criminal Investigation Division with assistance from the United States Marshals Service (USMS) and its partners in the Dominican Republic. Assistant United States Attorneys Alan A. Stevens and Benjamin M. Anderson prosecuted the case.
