Date: 07-18-2018

Case Style:

Case Number: 4:18-cr-00182-BP

Judge: Beth Phillips

Court: United States District Court for the Western District of Missouri (Jackson County)

Plaintiff's Attorney: Gregg Coonrod

Defendant's Attorney: Todd M Schultz - FPD

Description: Kansas City, MO - KC Husband, Wife Plead Guilty to Failure to Pay $328,000 in Business Taxes

A Kansas City, Mo., couple pleaded guilty in federal court today to failing to pay more than $328,000 in payroll and other taxes for their construction business.

William Mack Gilreath, also known as “Billy,” 38, and his wife, Malaika Samantha Gilreath, 42, each waived their right to a grand jury and pleaded guilty in separate appearances before U.S. District Judge Beth Phillips to a federal information that charges them with failure to pay employment tax.

The Gilreaths are co-owners of M.S. Consulting, L.L.C., a construction business in Kansas City, Mo.

Despite notification by their tax preparer of their tax responsibilities, and nine notices from the IRS, the Gilreaths willfully failed to pay a total of $328,351 in employment and other taxes that were due. In today’s plea agreement, Billy Gilreath acknowledged that he was more involved in the day-to-day operations of the business than his wife. Both Billy and Malaika Gilreath admitted they each were aware and responsible for collecting, accounting for, and paying over trust fund taxes.

By pleading guilty today, the Gilreaths admitted that they deducted and collected $209,597 in federal income taxes and FICA taxes (Social Security and Medicare) from their employees in 2014, 2015 and 2016. However, they failed to pay over those taxes to the IRS. During this time, the number of employees ranged from 16 to 37 employees.

In addition to the employees’ share of taxes collected, the Gilreaths also admitted that they failed to pay over the employer portion of FICA taxes, which totaled $90,173, and the Missouri Division of Employment Security Outstanding State Unemployment Tax of $28,581.

Under the terms of today’s plea agreements, the Gilreaths are jointly and severally liable to pay $328,351 in restitution to the IRS and the state of Missouri.

Under federal statutes, the Gilreaths are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.

This case was investigated by IRS-Criminal Investigation.

Outcome: 07/17/2018 9 APPEARANCE BOND ENTERED as to William Mack Gilreath in amount of $ 10,000. (Martinez, Kerry) (Entered: 07/17/2018)
07/17/2018 10 ORDER setting conditions of release as to William Mack Gilreath. Defendant released on a $10,000 unsecured appearance bond.. Signed on 7/13/18 by Magistrate Judge John T. Maughmer.(Martinez, Kerry) (Entered: 07/17/2018)
Guilty

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