The man is facing a raft of charges including wire fraud, money laundering and receiving federal funds. Investigations into the payroll company's activities were initiated by the Mercer County Prosecutor's Office in February 2016. Their investigation is said to have uncovered a shortfall of more than $3 million in the company's payroll tax deposits as well as a number of other discrepancies. Orders were subsequently issued by both state and federal courts requiring the man to disclose his assets.
Payroll companies routinely place funds that they have collected for their clients' payroll tax obligations into separate deposit accounts. The money is held in these accounts until it is sent to federal and state authorities. Prosecutors allege that the man used this money for his own purposes, which left clients including the City of Trenton with unexpected tax bills. The man faces up to 40 years in prison and fines of $750,000 if he is convicted on all counts.
This case shows the severe penalties those convicted on fraud charges may face. Criminal defense attorneys may seek to reduce the severity of these penalties by questioning the reliability of the evidence involved or challenging whether the specific intent to defraud was present.