Judge sentences Tecumseh man to 1 year in prison for tax evasion
1:23 p.m. Wednesday, August 20, 2008
The former director of operations for a Topeka nonprofit corporation was sentenced to 1 year in federal prison, U.S. Attorney Eric Melgren announced Wednesday.
Michael W. Slayton, 49, Tecumseh, pleaded guilty in April to one count of tax evasion and one count of failing to pay employee withholding taxes to the Internal Revenue Service.
Slayton was a founder and director of operations for Designs 4 Life, a nonprofit corporation created to assist families requiring in-home care providers for special needs individuals. He billed Medicaid for care providers’ hours.
From 1999 to 2004, he embezzled $238,097 from Designs 4 Life. He wrote 138 checks to himself from the nonprofit’s checking account and he altered the business’ records to conceal the crimes. In his personal tax returns, Slayton failed to include in his income the money he embezzled. As a result, he fraudulently avoided paying a total of $44,478 in taxes.
Slayton under-reported withholding and F.I.C.A taxes paid by employees of Designs for Life. As a result, he failed to pay to the Internal Revenue Service a total of $194,405 in employment taxes. On Tuesday, the court ordered him to pay restitution to the IRS.
The judge could have handed down the maximum penalty of five years and a fine up to $250,000 on each count.
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