Acting United States Attorney Ellison C. Travis announced that a federal jury has convicted Benjamin Thomas, III, 52, from Hammond, Louisiana. Thomas was found guilty of five counts of failing to truthfully account for and pay over federal trust fund taxes. The conviction came after a three-day trial presided over by U.S. District Judge Brian A. Jackson.
Thomas owned and operated Lighthouse Community Care, Inc., a mental health services clinic in Baton Rouge, Louisiana, since around 2013. As the business grew, he expanded operations across Louisiana and employed over 100 people.
The court heard evidence that Thomas withheld federal income, Social Security, and Medicare taxes from employees' paychecks but failed to file quarterly employment tax returns on time or pay the IRS the withheld funds. Specifically, for three quarters in 2017 and two quarters in 2018, he did not account for or pay more than $970,000 in trust funds.
Evidence showed that despite frequent reminders from the IRS about his tax obligations through notices and communications, Thomas diverted company funds elsewhere. Over $350,000 went to a vacation home in the Dominican Republic; more than $400,000 to another management company he controlled; and over $500,000 to a family trust he created. Additionally, substantial amounts were spent on luxury items such as cars (including a Lamborghini and McLaren), private school tuition, clothing, jewelry, and accessories.
“The defendant willfully failed to satisfy one of the most fundamental obligations business owners face - to truthfully account for and pay over the federal income, Social Security, and Medicare taxes that they withhold from their employees’ paychecks,” said Acting United States Attorney Travis. “Instead he treated his company’s bank accounts like his own personal ATM.”
Special Agent Demetrius Hardeman from IRS Criminal Investigation noted: “Employees expect their employers to turn over the employment taxes that are taken out of their paychecks... Employers who fail their responsibilities are possibly harming their employees’ future benefits.”
The case was investigated by the IRS Criminal Investigation Division with help from the United States Marshals Service (USMS) both domestically and in the Dominican Republic. It was prosecuted by Assistant United States Attorneys Alan A. Stevens and Benjamin M. Anderson.
