Monsey, NY - Payroll Tax Service Owner Sentenced On Tax Evasion And Fraud Charges

Owner of Monsey, NY payroll tax service, PAL Data Processing, Inc. was sentenced to 37 months in federal prison following his guilty plea to charges stemming from his theft of more than $2.3 million entrusted to him by dozens of corporations in order to satisfy their federal payroll tax obligations.
According to the charges, he started stealing his clients’ funds in 1998. After the clients advanced him the monies to pay the clients’ payroll tax obligations to the IRS, he took those funds for his own use in order to make personal trades in the stock market. As a result of those stock market trades, court records show, he lost more than $2.3 million and tried to cover up those losses by preparing and filing fraudulent payroll tax returns that falsely underreported and under-paid the clients’ payroll tax obligations.