Payroll Scam Lead to Jail Time

Santa Ana, California –Denise Browning, formerly a resident of Huntington Beach, California, was found guilty of two counts of aiding and assisting in the preparation of false payroll tax returns, following a three day trial before U.S.District Judge Philip S. Gutierrez on Friday.

Denise Browning, 47, was previously charged with two counts of aiding and assisting in the preparation of false payroll returns in an eight count indictment filed on August 26, 2011.

According to the indictment, Michael P. Harvey, 53, formerly of Anaheim Hills, and Jason M. Harvey, 32, formerly of Yorba Linda, and owner of Advanced Business Payroll, Inc., Global Business Outsource Solutions, Inc., and Global Consulting, Inc., were arraigned for attempting to evade the payment of over $15 million in payroll taxes and interest due to the IRS. Denise Browning was alleged to have aided and assisted in the preparation of the false payroll tax returns, Forms 941, for Advance Business Payroll, Inc. and Global Payroll Services, Inc.

On January 6, 2012, Michael Harvey pleaded guilty to evading the payment of payroll taxes and interest assessed against him by IRS. On July 31, 2012, Jason Harvey also pleaded guilty to evading the payment of payroll taxes and interest assessed against him by IRS.

According to court documents, beginning around September 18, 2006 and continuing through at least December 29, 2006, Michael P. Harvey and Jason M. Harvey attempted to evade the payment of a tax liability of more than $15 million assessed against Michael P. Harvey for his failure to pay to the IRS taxes withheld from the wages of employees.

According to court documents, around September 18, 2006, an agent of the IRS served wage levies directed to Advanced Business Payroll, Inc., Global Business Outsource Solutions, Inc., and Global Consulting, Inc., companies which were owned and operated by Jason M. Harvey. The levies required those companies to pay to the IRS amounts that became due and owing by the companies to Michael P. Harvey. Both Michael Harvey and Jason Harvey acknowledged service of the levies in writing around September 27, 2006. Michael Harvey admitted that he caused the companies to not honor the levies, and aided Jason Harvey to cause those companies to not honor the IRS levies.

According to court documents, before the service of the levies, Advanced Business Payroll, Inc., Global Business Outsource Solutions, Inc., and Global Consulting, Inc. issued more than 45 checks made payable to Michael Harvey which totaled more than $230,000. However, after service of the levies, the companies instead made cash payments to Michael Harvey of at least $62,700, and also paid Michael Harvey at least six checks made payable to “cash” totaling $22,800, without paying such amounts to the IRS in accordance with the levies. Also, in December 2006, Jason Harvey and Michael Harvey caused Global Consulting Inc., to issue two checks totaling $100,000 for the credit of Michael Harvey which were used to make payments on a personal judgment against Michael Harvey.

At time of sentencing, Denise Browning faces a maximum sentence of six years imprisonment; a one year period of supervised release; a fine of $250,000 or twice the gross gain or loss resulting from the offense, whichever is greater; and a mandatory special assessment of $200. Sentencing is scheduled for February 13, 2012 before U.S. District Judge Philip S. Gutierrez at 10:00 AM.

At time of sentencing, Jason Harvey and Michael P. Harvey each face a maximum sentence of five years imprisonment; a three year period of supervised release; a fine of $250,000 or twice the gross gain or loss resulting from the offense, whichever is greater; and a mandatory special assessment of $100. Sentencing is scheduled for Jason Harvey and Michael P. Harvey January 28, 2013 before U.S. District Judge George H. King at 11:00 AM.

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