In February 2023, a Rapid City businessman was sentenced to federal prison for withholding payroll taxes from his employees.
Asher Wagh, a co-owner of Captech International, LLC in Rapid City, pleaded guilty to one count of failure to withhold, properly account for, and pay over tax. The company dissolved in July 2022.
Chief Judge Roberto Lange sentenced Wagh to 14 months in federal prison followed by two years of supervised release. He also ordered Wagh to pay over $273,000 in restitution to the IRS.
Wagh acted as the sole manager of the company when he withheld money from employees’ paychecks between 2015 and 2017 but did not pay the IRS. According to court documents, he spent at least a portion of the money for his own personal use.
South Dakota crime statistics show that white-collar crimes are becoming more common in the state. It is important for individuals and businesses to be aware of their tax obligations and seek legal advice if they have any questions or concerns.
Contact Shalom Baer Gee at firstname.lastname@example.org for more information on this topic.