A Passaic County man has been sentenced to four years in prison for his involvement in a payroll tax evasion scheme amounting to $3.5 million, as announced by U.S. Attorney Alina Habba. Walter Hass, 63, from Hewitt, New Jersey, admitted guilt before U.S. District Judge Evelyn Padin on charges related to failing to collect and pay over payroll taxes.
Hass's sentence was delivered in Newark federal court, where he was also ordered to pay restitution of $3,527,645. U.S. Attorney Alina Habba stated that Hass "spent a decade failing to pay payroll taxes," using the funds instead for personal luxury expenditures. She emphasized that such actions demonstrate "blatant disrespect for the law."
Special Agent Jenifer L. Piovesan from IRS Criminal Investigation highlighted the importance of employment taxes for federal programs and noted that Hass prioritized his lifestyle over these obligations. The sentence reflects the IRS-CI's commitment to upholding accountability.
Court documents reveal that Hass owned a shipping and logistics company in Oakland, New Jersey, operating under various names since 2014. He failed to remit payroll taxes between 2014 and 2022 while spending company funds on luxury items such as high-end vehicles and vacations.
Hass signed his guilty plea in October 2023 but subsequently attempted to avoid responsibility by fabricating medical conditions to delay proceedings. His deception included falsified letters claiming he had cancer, which were eventually uncovered by law enforcement.
In addition to his prison term and financial penalties, Hass will serve three years of supervised release following his incarceration. The investigation was credited to special agents of the IRS Criminal Investigations under Special Agent Jenifer Piovesan's direction.
The case is being prosecuted by Assistant U.S. Attorney Katherine Calle and Edeli Rivera from the Special Prosecutions Division in Newark.
