A business owner in Florida is facing a 50-month prison sentence for tax fraud and filing a false tax return, after failing to pay over $20 million in tax withholdings from employee wages. According to court records, Matthew Brown of Palm Beach Gardens operated several businesses, including a payroll services company named Elite Payroll. This company, based in Martin County, Florida, was hired by small businesses in St. Lucie, Martin, and Palm Beach counties to manage payroll taxes such as Social Security, Medicare, and federal income taxes.
The U.S. government relies heavily on these taxes for funding crucial services. However, between 2014 and 2022, Brown neglected to forward the due taxes and instead enriched himself using the funds. Brown collected the tax liabilities from clients but underreported these amounts to the IRS on false tax returns. He then kept the surplus. In one case in 2021, a client owed $219,000 in taxes, but Brown reported only $32,000, keeping the remaining $187,000 for himself.
Brown used the misappropriated funds to acquire luxury goods, including a multimillion-dollar house, a yacht, an aircraft, and a collection of high-end cars, such as 27 Ferraris.
U.S. District Judge Aileen M. Cannon of the Southern District of Florida sentenced Brown to serve two years of supervised release following his prison term. She also directed him to pay restitution amounting to $22,401,585 and a $200,000 fine.
The case was announced by U.S. Attorney Hayden O’Bryne of the Southern District of Florida and Acting Deputy Assistant Attorney Karen E. Kelly of the Justice Department’s Tax Division. The investigation was carried out by the IRS Criminal Investigation. Prosecution was handled by Assistant U.S. Attorney Michael Porter and Trial Attorney Andrew Ascencio.
For more details, related court documents are accessible on the website of the District Court for the Southern District of Florida using case number 24-cr-14045.