A Florida healthcare magnate who entered a guilty plea in a federal tax evasion case faces lengthy jail time. In a federal court in Miami, Palm Beach Gardens resident Paul Walczak acknowledged evading employment taxes and failing to file his personal taxes. According to the U.S. Department of Justice, court documents showed that Walczak, who oversaw a group of health-related companies, including Palm Health Partners and Palm Health Partners Employment Services, withheld approximately $7.5 million intended for taxes from his employees’ paychecks and then decided not to send the money to the IRS.
Walczak continued to avoid paying his employees’ taxes and his company’s share of Social Security and Medicare taxes, totaling over $3.4 million, despite a previous run-in with the IRS in 2014 for a similar offense. During this time, his operation employed over 600 people, who together made over $24 million in annual payroll. However, despite the size of his workforce and the seriousness of his offenses, he lavishly spent company funds on personal luxuries, purchasing a yacht and shopping at upscale stores. Court filings show that Walczak’s activities cost the IRS more than $10.9 million in total.
Potential prison sentences of five years for the employment tax charge and a year for failing to file income tax returns have resulted from the allegations and subsequent guilty plea; additional penalties such as supervised release and restitution may also be considered. The decision is based on various statutory factors and U.S. District Court sentencing guidelines, and the sentence is scheduled to be settled on February 28, 2025. Following an investigation by the IRS Criminal Investigation unit, Trial Attorneys Andrew Ascencio, Brian Flanagan, and Ashley Stein are prosecuting the case, which was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division in the same press release.
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