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Payroll | December 24, 2024

California CEO Pleads Guilty to Employment Tax Crimes

In total, Comeau caused a tax loss to the IRS of approximately $1,150,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Isaac M. O'Bannon

A California businessman has pleaded guilty to not paying employment taxes to the IRS, the U.S. Department of Justice has announced.

According to court documents and statements made in court, John Comeau, of Santa Clara, was the CEO of Vivid Inc., a company that provided metal coating services across various industries in Campbell, California, and elsewhere. From at least the first quarter of 2010 through the end of 2019, Vivid withheld Social Security, Medicare and income taxes from the wages paid to its employees. However, Comeau, who was responsible for ensuring those funds were reported and paid to the IRS, did not do so. 

In total, Comeau caused a tax loss to the IRS of approximately $1,150,000.

Comeau is scheduled to be sentenced on April 30, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ismail J. Ramsey for the Northern District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Ilham Hosseini for the Northern District of California are prosecuting the case.

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Tags: Payroll, Taxes

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