Florida Payroll Service Owner Confesses to Committing Employment Tax Scam

Business Owner Charged with Employment Tax Fraud and False Tax Returns

Matthew Brown, the owner of Elite Payroll in Martin County, has pleaded guilty to employment tax fraud and filing a false tax return. According to court documents and statements, Brown underreported the tax liabilities of his clients and pocketed more than $20 million in taxes withheld from employees' paychecks.

Between 2014 and 2022, Brown operated payroll services for small businesses across St. Lucie, Martin, and Palm Beach Counties. Elite Payroll withheld Social Security, Medicare, and federal income taxes from employees' wages but did not remit these funds to the IRS. As a result, Brown's actions led to a tax loss exceeding $22 million.

The investigation of Brown's case was conducted by the IRS Criminal Investigation. The Department of Justice (DOJ) announced Brown's guilty plea, with Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida making the announcement.

Former Assistant U.S. Attorney Diana Acosta contributed to the investigation of Brown's case. The Justice Department's Tax Division and the U.S. Attorney's Office for the Southern District of Florida are involved in the prosecution of Brown's case. Trial Attorneys Andrew Ascencio and Ashley Stein of the Tax Division, along with Assistant U.S. Attorney Michael Porter for the Southern District of Florida, are prosecuting the case.

Court documents reveal that Brown used the stolen funds to purchase luxury assets, including a multimillion-dollar home, commercial and residential real estate, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a collection of luxury cars, including Ferraris, Porsches, and Rolls Royces.

The federal district court judge will determine Brown's sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors. Brown faces potential penalties including a maximum prison sentence of five years, supervised release, restitution, and monetary penalties. The sentencing date for Brown has not yet been set.

The customers of Matthew Brown's company Elite Payroll affected by his tax fraud were various businesses and clients relying on Elite Payroll for payroll and tax services. The case was heard in federal court.

This case serves as a reminder of the importance of honesty and integrity in business dealings, especially when it comes to taxes. The IRS and the Department of Justice take such matters seriously and will hold individuals accountable for their actions.