Herminigilda Manuel, the infamous owner of three California assisted living facilities pleaded guilty in federal court last month to willfully failing to account for and pay $512,000 in federal employment taxes.  Manuel, according to the Justice Department, admitted to not paying federal income, Social Security and Medicare taxes that were owed by the assisted living facilities and also to concealing the fraud by keeping two sets of payroll accounting records, from 2010 to 2013.

“One set of records consisted of wages paid to employees and taxes withheld from those wages that were reported to the IRS,” the department said. “The second set of accounting records consisted of additional wages paid to employees that were not reported to the IRS.”

Manuel was charged Feb. 8 with 12 counts of willful failure to account for and pay over employment taxes. The maximum statutory penalty for each count is five years in prison and a $250,000 fine, although additional periods of supervised release, fines and restitution also may be imposed.

Under a plea agreement, Manuel pleaded guilty to one count. If she complies with the plea agreement, the remaining counts will be dismissed at sentencing. A sentencing hearing is scheduled for June 11.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post Navigation