A former Frisco man was sentenced to 52 months in prison and ordered to pay more than $38.9 million in restitution to the IRS, U.S. Attorney for the Northern District of Texas Leigha Simonton announced.
Ronald James Paolucci, 55, co-founder and employee of American Management Staffing (AMS), was charged in January 2023 and pleaded guilty in February 2023 to conspiracy to defraud the United States and making a false tax return. U.S. District Judge Sam A. Lindsay sentenced Paolucci on Monday.
“We were proud to partner with IRS-CI on this important case,” said U.S. Attorney Simonton. “We stand ready to prosecute any employer who pockets employees’ payroll taxes and those who refuse to meet their tax obligations.”
Special Agent in Charge of IRS Criminal Investigation, Dallas Field Office, Christopher J. Altemus Jr., added, “Mr. Paolucci’s failure to remit withheld taxes is not only a breach of trust but a serious crime with severe consequences... Let this sentence serve as a stark reminder: tax compliance is not optional; it is the law.”
Court documents revealed that AMS, a temporary staffing services company, withheld payroll taxes from employees' paychecks, including federal income taxes, Medicare, and social security taxes, but failed to remit these taxes to the IRS between 2014 and 2020. AMS issued W-2 forms indicating the taxes had been withheld, despite not paying the IRS.
The investigation was conducted by IRS – Criminal Investigation, and Assistant U.S. Attorney Marty Basu prosecuted the case.
