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Home Local VA State News

Virginia man pleads guilty to failing to pay $1.3M in taxes

May 27, 2022
in VA State News
Reading Time: 1 min read
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RICHMOND, Va. (AP) — A Virginia man pleaded guilty Thursday to charges that he failed to pay $1.3 million in taxes to the IRS by withholding payroll taxes from three different companies owned by his family, a federal prosecutor said.

U.S. Attorney Jessica Aber said in a news release that David Corey Warren, 47, of Chesterfield was responsible for withholding the required Medicare, Social Security, and federal income taxes from his employees’ wages, and paying that amount over to the IRS.

Court documents show Warren served as director of operations for three companies that provided group homes, home care nurses and daycare center services for mentally disabled adults in Chesterfield and Richmond.

Warren also had an obligation to file an employer’s quarterly federal tax return. He used a third-party payroll company for various payroll services, but prosecutors said he underreported the true value of the employment taxes, the documents said.

Warren used the withheld taxes to pay for things like travel to the Caribbean, golf club memberships, private basketball lessons, luxury clothing and accessories, prosecutors said.

Warren is scheduled to be sentenced on Oct. 13, when he faces up to five years in prison.

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