Ga. U.S. Attorney: CEO of Atlanta Engineering Firm Pleads Guilty to Failing to Pay Payroll Taxes

ATLANTA, Georgia, March 3 -- The U.S. Attorney for the Northern District of Georgia, Ryan K. Buchanan, issued the following news release on March 2, 2023:

Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes.

"Payroll taxes critically fund social insurance programs, including Social Security and Medicare," said U.S. Attorney Ryan K. Buchanan. "Johnson refused to pay payroll taxes while withholding those funds from his employee's paychecks for years."

"Johnson's failure to pay over employment tax withheld from his employees is unlawful and ultimately impacts his employees future Social Security benefits," said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "Johnson pleading guilty today is evidence of IRS Criminal Investigation and its partners working hard to hold employers accountable when they steal from their employees and other honest tax paying citizens."

"The U.S. Department of Labor will use all resources available to hold fiduciaries who fail to work in the interest of plans and participants accountable," said Mark Seidel, Acting Regional Director of EBSA's Atlanta Regional Office in Atlanta, Georgia. "Getting retirees and workers their contributions in a timely manner is vital to their livelihood. We will remain steadfast in continued work with our federal and state partners to ensure fiduciaries follow the laws or face consequences, including when necessary, debarment from serving as a fiduciary or trustees of any retirement plan. Fiduciaries who need assistance on proper management of employee benefit plans may contact the Employee Benefits Security Administration for compliance assistance."

According to U.S. Attorney Buchanan, the charges and other information presented in court: Charles Johnson, Sr., was the President and CEO of Williams-Russell and Johnson, Inc., an engineering firm headquartered in Atlanta. While running the firm, Johnson failed to pay significant amounts of withheld income and employment taxes to the Internal Revenue Service; pension (401(k)) payments to the firm's retirement plan; and health insurance premiums to the health insurer. These funds were collected and withheld from employee paychecks for multiple years, stretching from at least 2015 to 2019.

As president and CEO of the firm, Johnson held a fiduciary responsibility to withhold the required income and employment taxes and pay that amount to the IRS. He was also a plan fiduciary for the retirement and health plans, required to pay the withheld amounts.

As a result, Charles Johnson, Sr., 82, of Atlanta, Georgia, was charged via a two-count Criminal Information alleging failure to account for and pay employment taxes and theft from an employee benefit plan. The Information charges that Johnson failed to pay $1.4 million in employment taxes and failed to pay more than $480,000 to the firm's 401(k) plan and its health insurer for premium payments. He has pleaded guilty to the offense of failure to pay taxes and agreed to pay $1.4 million in restitution to the United States and an additional $210,000 to the employees who participated in the employee benefit plans.

This case is being investigated by the Internal Revenue Service Criminal Investigation and the U.S. Department of Labor-Employee Benefits Security Administration.

Assistant U.S. Attorney Christopher J. Huber is prosecuting the case.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

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Original text here: https://www.justice.gov/usao-ndga/pr/ceo-atlanta-engineering-firm-pleads-guilty-failing-pay-payroll-taxes