Federal Jury Convicts CEO for Obstructing and Defrauding the IRS and Stealing Money from Employee

[TexasTowelie]

Federal Jury Convicts Chief Executive Officer for Obstructing and Defrauding the IRS and Stealing Money from Employee Healthcare and 401(K) Plans


DENVER – Riordan A. Maynard, age 50 of Centennial, was found guilty of corruptly impeding the administration of tax laws, conspiracy to defraud the United States, conspiracy to steal or embezzle employee benefit plan and healthcare funds, and theft or embezzlement in connection with healthcare following a seven day jury trial before U.S. District Court Judge Christine M. Arguello, announced United States Attorney Jason R. Dunn, IRS Criminal Investigation Special Agent in Charge Steven Osborne and U.S. Department of Labor Employee Benefits Security Administration Regional Director Jim Purcell. The federal jury returned its verdict yesterday afternoon.

According to court records and evidence presented at trial, Maynard served as the Chief Executive Officer of two communications technology companies located in Denver, Colorado, Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI). TBGSI offered a 401(k) savings plan to the employees of both TBGSI and TBUSA. Maynard conspired with a co-conspirator to steal funds that employees had directed TBGSI to withhold from their paychecks for 401(k) plans, and ultimately stole over $60,000 of 401(k) withholdings and used them for other TBGSI expenses.

TBGSI also claimed to offer a healthcare benefit program to TBGSI employees. In 2017, TBGSI claimed to contribute $600 per month to each participant’s premiums. Participants were responsible for the remainder of the premium cost. TBGSI automatically deducted the participant contribution from each participant’s paycheck. TBGSI was responsible for forwarding the full premium to the health insurance carrier. Maynard was convicted of stealing over $50,000 in funds that employees had withheld from their paychecks for their health insurance plans. Maynard then failed to pay for health insurance coverage. By June 2017, TBGSI owed over $100,000 to the health insurance carrier, which then terminated coverage for the employees. Numerous employee healthcare claims were denied.

TBUSA and TBGSI were also required to pay payroll taxes to the IRS. From early 2012 through September 2017, Maynard corruptly impeded the IRS’s attempts to collect these taxes. Maynard closed TBUSA and reopened it as TBGSI to avoid paying more than $2.5 million in unpaid payroll taxes owed to the IRS. TBGSI then ran up an additional unpaid payroll tax liability of over $2 million. Maynard transferred funds from business accounts to Maynard’s personal account to avoid IRS levies. And he conspired with a co-conspirator to falsely tell TBGSI customers that IRS levies they had received were in error, in an effort to prevent customers from sending money to the IRS.

Read more: https://www.justice.gov/usao-co/pr/federal-jury-convicts-chief-executive-officer-obstructing-and-defrauding-irs-and-stealing