Michael Todd Lucas Pleads Guilty in Employment Tax Scheme

Michael Todd Lucas Pleads Guilty in Employment Tax Scheme

California CEO, Michael Todd Lucas Pleads Guilty in Employment Tax Scheme
Did Not Pay IRS Millions in Employee Withholdings

(STL.News) A California man pleaded guilty yesterday to employment tax fraud.

According to court documents, Michael Todd Lucas, CEO of i3 Brands Inc., controlled a number of inventory software development businesses from 2008 through 2017, including i3 Brands Inc., Trademotion Inc. (formerly known as Trademotion LLC), Intelligentz Automotive Corporation, and Intelligentz Corporation. Lucas had significant control over the finances of these companies and had a legal duty to account for and pay employment taxes to the IRS.  Lucas caused these entities to withhold taxes from employees’ paychecks, but he did not fully pay the withheld taxes to the IRS. Rather, Lucas caused the businesses to spend thousands of dollars for his personal benefit.  In total, from 2008 to 2017, Lucas’ entities failed to pay over more than $4.9 million in payroll taxes, penalties, and interest.

Lucas pleaded guilty to failing to account for and pay over employment taxes.  He is scheduled to be sentenced on Oct. 4, 2021, and faces a maximum penalty of five years in prison.  The defendant also faces a period of supervised release, restitution, and monetary penalties. 

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