Date: 08-20-2024

Case Style:

United States of America v. Michelle Leach-Bard

Case Number: 1:24-cr-00107

Judge: Stephanie A. Gallagher

Court: The United States District Court for the District of Maryland (Baltimore County)

Plaintiff's Attorney: The United States Attorney’s Office for Washington DC

Defendant's Attorney:

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Description:

Baltimore, Maryland criminal defense lawyer represented the Defendant charged with Employment Tax Crimes and Embezzling from Employees
Payroll Company Owner Sentenced for Employment Tax Crimes and Embezzling from Employees’ 401(k) Plans

Michelle Leach-Bard, of Lutherville-Timonium, was the owner and sole corporate officer of iProcess Online Inc., a third-party accounting company that specialized in payroll, human resources and bookkeeping. From at least October 2016 through the end of 2021, she was, as iProcess’ sole corporate officer, responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying those taxes to the IRS. Though the taxes were withheld, Leach-Bard did not pay them to the IRS, as she was required to do.

In total, Leach-Bard caused a tax loss to the IRS of $2,663,264.12.

In addition, iProcess had a Section 401(k) Profit Sharing and Retirement Plan for the benefit of some of its employees. Contributions to the 401(k) Plan were deducted from participating employees’ wages. Beginning in or around 2007, Leach-Bard did not pay those employee contributions to the 401(k) Plan. In total, Leach-Bard did not pay to the 401(k) plan approximately $207,180.41 in employee withholdings. Additionally, Leach-Bard did not make approximately $18,740.37 in employer matching contributions for certain employees.

In addition to the term in prison, U.S. District Judge Stephanie A. Gallagher ordered Leach-Bard to serve two years of supervised release and to pay $2,663,264.12 in restitution to the United States and approximately $207,180.41 in restitution to her former employees.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration investigated the case.

Trial Attorneys Catriona Coppler and Jeffrey McLellan of the Tax Division prosecuted the case.

Outcome:

Defendant was found guilty and sentenced to one year and one day in prison. In addition to the term in prison Leach-Bard to serve two years of supervised release and to pay $2,663,264.12 in restitution to the United States and approximately $207,180.41 in restitution to her former employees.

Plaintiff's Experts:

Defendant's Experts:

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