PITTSBURGH - A resident of Allegheny County, Pennsylvania pleaded guilty in federal court to charges of willfully failing to pay over payroll taxes, United States Attorney Scott W. Brady announced today.
Amarender Tiparthy, 50, of Coraopolis, pleaded guilty to four felony counts before Senior United States District Judge Donetta Ambrose.
In connection with the guilty plea, the court was advised that Tiparthy willfully failed to account for and pay over payroll taxes totaling $2,285,807.70, including all relevant conduct, for the sixteen tax quarters in 2010 through 2013.
According to information provided during the guilty plea hearing, Tiparthy was the sole owner of Prodigy Software Group, Inc. ("Prodigy"), a Subchapter S business that provided companies and governmental entities with consulting services regarding information technology projects. The business model of Prodigy included the employment of individuals who then were assigned to various information technology projects pursuant to contracts negotiated and entered into by Tiparthy on behalf of Prodigy. Although Tiparthy collected payroll taxes for the sixteen tax quarters in 2010 through 2013, he failed to truthfully account for and pay over the taxes when due to the Internal Revenue Service.
Judge Ambrose scheduled sentencing for March 19, 2019 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Tiparthy on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation, conducted the investigation leading to the conviction in this case.
Source: U.S. Department of Justice, Office of the United States Attorneys
