Florida Payroll Boss Caught Red-Handed in Massive Tax Fraud Scheme

A guy from Florida acknowledged in federal court that he had withheld over $20 million in taxes from workers’ paychecks and neglected to send the money to the IRS. As per the Department of Justice (DOJ), Matthew Brown, the proprietor of Elite Payroll in Martin County, entered a guilty plea to charges of employment tax fraud and submitting a fraudulent tax return. Between 2014 and 2022, Brown provided payroll services to small businesses in St. Lucie, Martin, and Palm Beach Counties, according to court documents and statements. Federal income taxes, Social Security, and Medicare were deducted from his employees’ paychecks by his business, Elite Payroll. But Brown kept the money for himself rather than sending it to the IRS as required.

Brown charged his clients the whole amount of their tax obligations throughout this time, but he submitted fake tax returns that understated the amounts due. A multimillion-dollar house, commercial and residential real estate, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and an assortment of high-end vehicles, such as Ferraris, Porsches, and Rolls-Royces, were among the luxury items he acquired with the stolen money. Over $22 million was lost in taxes as a result of Brown’s conduct. These payments were intended to be sent to the IRS on behalf of Elite Payroll’s clients and held in trust for them.

Brown risks financial penalties, supervised release, restitution, and a possible prison term of five years. The date of his sentencing is still pending. After considering the U.S. Sentencing Guidelines and additional statutory considerations, the federal district court judge will decide on his sentence. IRS Criminal Investigation looked into the matter. The plea was made public by U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. Assistant U.S. Attorney Michael Porter for the Southern District of Florida and Trial Attorneys Andrew Ascencio and Ashley Stein of the Tax Division are prosecuting the case. Diana Acosta, a former assistant U.S. attorney, assisted with the inquiry.