Paul Walczak, a healthcare business owner from Palm Beach Gardens, Florida, has entered a guilty plea for tax-related offenses that sum up to a staggering loss of more than $10.9 million for the IRS, as stated by the Department of Justice in a recent news release. Walczak managed a conglomerate of healthcare entities, including Palm Health Partners and Palm Health Partners Employment Services. According to details fromLocal 10, these businesses at their zenith collectively handled upwards of $24 million in yearly payroll, employing over 600 workers.
The core of Walczak s scheme involved withholding close to $7.5 million in payroll taxes from his employees but deliberately failing to remit said funds to the IRS this despite previously being penalized for similar infractions back in 2014. As mentioned byCBS 12, his avoidance of paying his share of Social Security and Medicare taxes also contributed significantly to the tax loss, totaling approximately $3.48 million.
Beyond the grave matter of shirking tax duties, the investigation brought to light that Walczak exploited business funds egregiously. He siphoned off over $1 million to procure a yacht and lavishly spent on luxuries at high-end retailers, including Bergdorf Goodman and Cartier. The extravagance did not end there, as Walczak further funneled hundreds of thousands into his personal bank accounts. Furthermore, he neglected to file personal income tax returns for the years 2019 and 2020, regardless of earning a substantial income that bound him to do so.
Walczak now awaits sentencing on February 28, 2025, and is facing the prospect of up to five years of imprisonment for the employment tax charge, in addition to a possible one year for his failure to properly file his tax returns. The courts, as per the investigation details, might also lead Walczak to be required to make restitution, pay monetary penalties, and undergo supervised release following his prison term.
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