Wyomissing Executive Accused of Diverting Over $1 Million in Employee Taxes

United States Attorney's OfficeImage via United States Attorney's Office

PHILADELPHIA, PA — United States Attorney Jacqueline C. Romero has announced the indictment this week of Alan C. Redmond, a 42-year-old resident of Wyomissing, Pennsylvania, on multiple counts related to tax violations. The charges involve six counts of failure to remit employment taxes during the years 2019 through 2021 for Bene Market LLC, a Reading-based call center. Redmond made his initial appearance in federal court concerning these allegations on Tuesday, October 29, 2024.

According to the indictment, Redmond, as the general partner holding a predominant 96% share in Bene Market, was responsible for the financial and operational decisions of the corporation. This role required him to ensure the withholding of federal taxes, including Social Security, Medicare, and income taxes, from employee wages, commonly referred to as “trust fund taxes.” Furthermore, he was obligated to transfer these taxes, along with the corporation’s contributions to Social Security and Medicare, to the Internal Revenue Service on a quarterly basis.

The indictment claims that, over the specified period, Redmond orchestrated the withholding of more than $1 million in trust fund taxes from employees’ wages. However, these amounts were allegedly not transferred to the IRS. Instead, it is alleged that Redmond diverted these funds towards personal expenditures. These expenditures reportedly included a wide range of personal benefits such as property acquisitions, airline tickets, limousine hires, vehicle purchases, event tickets, mortgage payments, and distributions for his personal partnership interests.

Should Redmond be convicted of the charges, he faces a potential maximum sentence of 30 years in prison, a three-year supervised release term, and fines totaling up to $1.5 million.

READ:  Treasury and IRS Propose Updates to Tax Practitioner Rules Under Circular 230

This case is under investigation by the IRS Criminal Investigation unit and is being managed by Assistant United States Attorneys Mary Crawley and Samuel Dalke. It is important to note that an indictment is merely an allegation, and Redmond is presumed innocent unless proven guilty in a court of law.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.