A California man pleaded guilty yesterday to employment tax fraud.
According to court documents, Michael Todd Lucas, CEO of i3 Brands Inc., controlled a number of inventory software development businesses from 2008 through 2017, including i3 Brands Inc., Trademotion Inc. (formerly known as Trademotion LLC), Intelligentz Automotive Corporation, and Intelligentz Corporation. Lucas had significant control over the finances of these companies and had a legal duty to account for and pay employment taxes to the IRS. Lucas caused these entities to withhold taxes from employees paychecks, but he did not fully pay the withheld taxes to the IRS. Rather, Lucas caused the businesses to spend thousands of dollars for his personal benefit. In total, from 2008 to 2017, Lucas entities failed to pay over more than $4.9 million in payroll taxes, penalties, and interest.
California CEO Pleads Guilty in Employment Tax Scheme Details
Los Angeles, California - A California man pleaded guilty yesterday to employment tax fraud.
According to court documents, Michael Todd Lucas, CEO of i3 Brands Inc., controlled a number of inventory software development businesses from 2008 through 2017, including i3 Brands Inc., Trademotion Inc. (formerly known as Trademotion LLC), Intelligentz Automotive Corporation, and Intelligentz Corporation. Lucas had significant control over the finances of these companies and had a legal duty to account for and pay employment taxes to the IRS. Lucas caused these entities to withhold taxes from employees’ paychecks, but he did not fully pay the withheld taxes to the IRS. Rather, Lucas caused the businesses to spend thousands of dollars for his personal benefit. In total, from 2008 to 2017, Lucas’ entities failed to pay over more than $4.9 million in payroll taxes, penalties, and interest.