United States Attorney's Office for the Eastern District of Pennsylvania

10/29/2024 | Press release | Distributed by Public on 10/29/2024 13:29

Berks County Businessman Indicted on Tax Fraud Charges

Press Release

Berks County Businessman Indicted on Tax Fraud Charges

Tuesday, October 29, 2024
For Immediate Release
U.S. Attorney's Office, Eastern District of Pennsylvania

PHILADELPHIA - United States Attorney Jacqueline C. Romero announced that Alan C. Redmond, 42, of Wyomissing, Pennsylvania, was charged by indictment with six counts of failure to pay over employment taxes between 2019 and 2021 for Bene Market LLC, a call center in Reading, Pa., that purported to act as a broker of insurance, selling health insurance and related products over the telephone. The defendant made his initial appearance in federal court on these charges this afternoon.

The indictment alleges that, as the 96% general partner of Bene Market, and as the individual with ultimate and final decision-making authority for the corporation, Redmond was legally obligated to withhold Social Security, Medicare and income taxes from wages paid to employees (known as "trust fund taxes") and to pay over these taxes to the IRS each quarter, along with matching contributions from the employer for Social Security and Medicare taxes.

The indictment further alleges that between 2019 and 2021, Redmond caused Bene Market to withhold over $1 million in trust fund taxes from the wages and paychecks of its employees, but Redmond did not pay over these withheld amounts to the IRS on behalf of the employees, as required. Instead of paying over the trust fund taxes withheld from employee paychecks, Redmond caused Bene Market to make thousands of dollars of expenditures for his own personal benefit, including property purchases, airline tickets, limousine services, vehicle purchases, event tickets, mortgage payments, and partnership distributions.

If convicted, the defendant faces a maximum possible sentence of 30 years' imprisonment, a three-year period of supervised release, and a $1,500,000 fine.

The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant United States Attorneys Mary Crawley and Samuel Dalke.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Contact

[email protected]
215-861-8300

Updated October 29, 2024
Topic
Tax