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Date: 04-15-2022

Case Style:

United States of America v. Daniel Fry

Case Number: 1:20-cr-00123-JNP


Court: United States District Court for the District of Utah (Salt Lake County)

Plaintiff's Attorney: United States Attorney’s Office

Defendant's Attorney: Roy Cole

Description: Salt Lake City, Utah criminal defense lawyer represented defendant charged with failing to pay and account for trust fund taxesrelated to his four healthcare related businesses in the Ogden area.

Daniel Fry, age 46, of Ogden, owned and operated four businesses in the Ogden area. These businesses were Burch Creek Homecare and Hospice LLC, which closed in 2015, Scrub World, which closed in 2018, Medical Billing Advantage LLC, and Country Niche LLC, both of which closed in 2020. Fry was responsible for handling the payroll for the businesses, including issuing paychecks to employees and withholding Federal Insurance Contribution Act (FICA) employment taxes. As a responsible party for each of these companies, Fry was required to collect, account for, and pay over the “trust fund taxes” to the Internal Revenue Service on a quarterly basis. Fry was also responsible for paying over the employer portion of these trust fund taxes to the IRS.

From January 2013 to December 2016, Fry withheld from employee paychecks and collected the trust fund taxes for the businesses, as required. He also reported the trust fund tax withholdings of his businesses to the IRS. At the same time, however, he failed to pay over any of the trust fund taxes that the businesses owed to the IRS. Fry further failed to pay to the IRS the employer portion of the trust fund taxes owed by his businesses. In total, from January 2013 to December 2016, fry owed and willfully failed to pay over to the IRS $568,590 owed by the businesses.

“Failure to pay taxes is a serious crime,” said United States Attorney Andrea T. Martinez. “This case is proof that we will hold business owners accountable if they violate their duty to pay employment taxes to the United States Government.”

“This investigation and prosecution demonstrates the toll that willful violations of the United States tax laws takes on not only the system, but on the average taxpayer,” stated Albert Childress, Special Agent in Charge, IRS-Criminal Investigation. “Mr. Fry’s actions hurt the taxpayers from whom he took withholdings but never paid over, he also harmed competing businesses who followed the law. The mission of IRS-Criminal Investigation is to enforce the tax laws of this country to instill confidence in and maintain a fair tax system for all.”

U.S. Attorney Andrea T. Martinez for the District of Utah made the announcement. The case prosecuted by Assistant United States Attorneys from the United States Attorney’s Office for the District of Utah. The case was investigated by IRS-Criminal Investigation.

26:7202 WILLFUL FAILURE TO COLLECT/PAY OVER TAX/Failure to Account for and Pay Over Trust Fund Taxes

"Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution."

Outcome: BOP 12 months and one day. Supervised release 1 year. Standard and special conditions of release. No fine imposed. Special Assessment Fee of $100.00. Restitution of $568,590.48.

Plaintiff's Experts:

Defendant's Experts:

Comments: Business owner got in over his head and instead of submitting social security, fica, and other withholdings to the government as required by law he used it to pay to keep his business going. When confronted with his wrong doing he accepted responsibility but he had made no effort at repayment of the debt to the government, by way of mitigation he had paid off the debt to the owed to the Utah State Tax Commission. A plea agreement was worked out under 11C1(c) wherein the Government agreed to a sentencing guideline of 0-18 months. The judge decided to accept the plea and then sentenced him to 366 days so he is eligible for good time under the federal guidelines. Coy Cole

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