A Florida man has admitted in federal court that he withheld more than $20 million in taxes from workers’ paychecks and failed to remit those funds to the IRS. Matthew Brown, owner of Elite Payroll in Martin County, pleaded guilty to employment tax fraud and filing a false tax return, according to the Department of Justice (DOJ).
Court documents and testimony revealed that between 2014 and 2022, Brown provided payroll services for small businesses in St. Lucie, Martin and Palm Beach counties. His company, Elite Payroll, withheld Social Security, Medicare and federal income taxes from workers’ paychecks. But instead of turning those funds over to the IRS as required, Brown pocketed the money.
During this period, Brown claimed the full amount of his tax liabilities from his clients, but filed false tax returns that understated the amount owed. He used the stolen funds to purchase luxury assets, including multi-million dollar homes, commercial and residential properties, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft and a collection of luxury cars including Ferraris, Porsches and Rolls Royces.
In total, Brown’s actions resulted in a tax loss of more than $22 million. These funds were to be held in trust for Elite Payroll’s clients and paid to the IRS on their behalf.
Brown faces a maximum sentence of five years in prison, supervised release, restitution and fines. His sentence has not yet been determined. A federal district court judge will determine his sentence after considering the US Sentencing Guidelines and other legal factors.
The IRS Criminal Investigation Department investigated the fact. Stewart M. Goldberg, Acting Assistant Attorney General for the Department of Justice’s Tax Division, and Markenzie Lapointe, United States Attorney for the Southern District of Florida, announced the lawsuit.
The case is being prosecuted by IRS Attorneys Andrew Asensio and Ashley Stein and Assistant U.S. Attorney Michael Porter for the Southern District of Florida. Former Assistant US Attorney Diana Acosta contributed to the investigation.