Local Man Faces Sentencing for Defrauding U.S. Government
IRS says he helped hide $500,000 in employee wages while managing demolition business.
A Plymouth Meeting man faces sentencing Thursday after he pleaded guilty to hiding over $500,000 in employee wages from the federal government in the mid-2000's, avoiding approximately $172,645 in taxes.
According to a news release from the Internal Revenue Service's Criminal Investigation Office, Michael C. Cochran, of Plymouth Meeting, and Jean M. Flynn, of Philadelphia, hid the wages in a non-business bank account while employees of the Al Johnson Company, a Philadelphia-based demolition business.
Court documents say that between July 2005 and January 2007, Cochran, the company's manager, and Flynn, its bookkeeper, concealed the funds in two separate accounts in order to avoid paying federal taxes, and falsified ten quarterly statements. Cochran then signed and distributed non-payroll checks to various employees through those accounts, documents show.
The IRS filed its charges on April 30, 2012, and Cochran pleaded guilty to conspiracy to defraud the U.S. government in June. He faces sentencing on September 13th, 2012.
Flynn was found guilty of that charge and also for falsifying a personal income tax return and was sentenced to 60 months probation and ordered to pay $215,738 in restitution.