Hayden O’Byrne United States Attorney for the Southern District of Florida | The Florida Bar
A Florida man has been sentenced to 50 months in prison for failing to pay taxes withheld from his employees’ wages and submitting a false tax return. Matthew Brown, who owned and ran several businesses in Martin County, Florida, including a payroll services company named Elite Payroll, was found guilty of defrauding the U.S. government of more than $20 million in taxes.
Elite Payroll served small businesses in St. Lucie, Martin, and Palm Beach Counties by collecting and paying Social Security, Medicare, and federal income taxes. These withheld taxes are crucial for funding Social Security and Medicare, as well as forming a significant portion of all federal income taxes collected annually.
From 2014 to 2022, instead of paying these taxes, Brown allegedly enriched himself, charging clients for their complete tax liabilities while filing false employment tax returns that underreported these liabilities. For example, in one quarter of 2021, a client owed around $219,000, which Elite Payroll collected. However, a false tax return was submitted claiming a liability of $32,000, with Brown keeping the difference of approximately $190,000.
Proceeds from this scheme were used by Brown for luxury purchases, including real estate, a yacht, an aircraft, and a notable collection of vehicles, including 27 Ferraris among others.
As part of his sentencing, U.S. District Judge Aileen M. Cannon ordered Brown to serve two years of supervised release, along with paying restitution amounting to $22,401,585 and a $200,000 fine.
The case was investigated by IRS Criminal Investigation, with prosecution led by Assistant U.S. Attorney Michael Porter and Trial Attorney Andrew Ascencio.
U.S. Attorney Hayden O’Bryne and Acting Deputy Assistant Attorney Karen E. Kelly were involved in the announcement of the sentencing. Further details can be accessed on the website of the United States Attorney’s Office for the Southern District of Florida and the District Court for the Southern District of Florida.
