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Home Local VA State News

Woman pleads guilty to failing to pay $2.7M in payroll taxes

May 5, 2022
in VA State News
Reading Time: 1 min read
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NORFOLK, Va. (AP) — A Virginia woman has pleaded guilty to failing to pay the Internal Revenue Service $2.7 million in payroll taxes that she deducted from her employees’ paychecks, a federal prosecutor said.

Court documents show that from at least 2011 to 2019, Wendy Brockenbrough, 53, of Virginia Beach failed to pay over to the IRS payroll taxes from three companies she owned, said U.S. Attorney Jessica D. Aber in a news release. She also had to file an Employer’s Quarterly Federal Tax Return form, but didn’t do it for any of the businesses.

Also, court records indicate that Brockenbrough issued her employees weekly paystubs and annual Form W-2s showing the appropriate payroll taxes were being withheld from her employees’ paychecks. While she withheld the taxes, Brockenbrough failed to pay the IRS.

Instead, Brockenbrough purchased two boats worth nearly $1 million and a Jeep Wrangler for approximately $41,000, records said. She tried to hide her actions by lying to her accountants and saying she had made the payments. To support her claims, she forged IRS records and Quickbook entries showing the taxes had been paid.

Brockenbrough is scheduled to be sentenced on Sept. 8. She faces up to 15 years in prison.

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