Maryland CEO Brett Hill Convicted of Failing to Pay Over $1 Million in Payroll Taxes

A Maryland man was convicted yesterday on 16 counts for failing to collect and pay payroll taxes, a scheme that resulted in significant financial losses for the U.S. government.

The Charges Against Brett Hill

Brett Hill, who resided in Parkton and Berlin, Maryland, served as the Chief Executive Officer of two telecommunications companies.

In his role, Hill was responsible for withholding federal income taxes, Social Security, and Medicare taxes from his employees’ wages and ensuring those funds were paid to the government.

He also had the duty of filing quarterly tax returns and paying his companies’ share of Social Security and Medicare taxes.

However, from the second quarter of 2016 to the fourth quarter of 2018, Hill withheld taxes from his employees’ paychecks but did not file the necessary tax returns nor pay the funds over to the government.

Instead, Hill used the withheld taxes for his personal salary and other company expenses, failing to meet his tax obligations.

He also neglected to pay the companies’ share of Social Security and Medicare taxes.

Impact on the U.S. Government

As a result of Hill’s actions, the U.S. government faced a tax loss of over $1 million.

This case highlights the serious financial repercussions when payroll taxes are not properly handled.

Facing Potential Consequences

Hill will be sentenced at a later date, with the potential to face up to five years in prison for each count of failing to collect and pay over the required taxes.

A federal district court judge will determine the exact sentence, taking into account the U.S. Sentencing Guidelines and other statutory factors.

Ongoing Investigations and Prosecution

This case was investigated by the IRS Criminal Investigation division.

The Justice Department’s Tax Division, specifically Trial Attorneys Shawn T. Noud and Catriona M. Coppler, is prosecuting the case.

Stay tuned for updates as Hill’s sentencing date approaches and further legal proceedings unfold.