Ex-Michigan payroll tax firm owner accused of stealing thousands for personal expenses
DETROIT – The former owner of a Michigan payroll tax service firm is accused of
DETROIT – The former owner of a Michigan payroll tax service firm is accused of stealing thousands of dollars to cover expenses for his other businesses and to fund remodeling and construction costs for his wife’s business.
A federal grand jury in Detroit indicted Dale Thrush, of Farwell, Mich., this week. Thrush was the owner and operator of 402 N. Mission St. LLC (Mission Street), based in Mount Pleasant, Mich. The company provided payroll tax services to employers and is accused of withholding taxes and forwarding the funds due to the IRS.
The indictment alleges that from 2014 through 2016, Thrush withheld payroll taxes from Mission Street employees’ paychecks, but only paid a portion of the funds due to the IRS. Instead, Thrush allegedly used nearly $400,000 from Mission Street’s payroll account, including the withheld taxes, to cover expenses for his other businesses and to fund remodeling and construction costs for his wife’s business. It is also alleged that from 2013 through 2016, Thrush did not file personal tax returns reporting the income he earned from his businesses.
If convicted, Thrush faces a maximum sentence of five years in prison for each of the ten counts of failing to pay over payroll taxes, and a maximum sentence of one year in prison for each of the four counts of failing to file his own return. Thrush also faces a period of supervised release, restitution, and monetary penalties.
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