Josef Neuman of Lakewood, faced justice on Friday, April 5, 2024, as he was sentenced to 30 months in prison for failing to pay over $10 million in payroll taxes linked to his ownership of multiple businesses.
Neuman, 37, stood before U.S. District Judge Michael A. Shipp and admitted guilt to an information charging him with willful failure to pay over payroll taxes for one of his businesses in 2018. Judge Shipp, presiding over the case, delivered the sentence at the Trenton federal court.
According to documents filed by U.S. Attorney Philip R. Sellinger and statements made during the court proceedings, Neuman served as the chief executive officer of a business in Lakewood that provided administrative services to operators of nursing homes and healthcare facilities. He also co-owned and operated approximately 20 entities in the same sector.
In his capacity as the person controlling the financial affairs of these companies, Neuman was entrusted with the responsibility to collect, accurately account for, and remit payroll taxes to the Internal Revenue Service (IRS). However, during the tax years of 2017 and 2018, Neuman neglected to pay over $10 million in payroll taxes owed by the companies to the IRS.
The investigation revealed that despite being aware of the outstanding tax obligations, Neuman prioritized other business expenses and employee salaries over settling the tax dues. This resulted in an accumulation of tax liabilities, further exacerbating the financial misconduct.
In addition to the 30-month prison sentence, Judge Shipp imposed a two-year supervised release term on Neuman and ordered restitution amounting to $11.2 million.
The successful prosecution in this case was attributed to the diligent efforts of special agents from the IRS – Criminal Investigation unit, led by Acting Special Agent in Charge Jenifer L. Piovesan.
Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark represented the government in the proceedings.
Josef Neuman, a registered Republican affiliated with the party, hails from Lakewood, New Jersey, and is a voter in Ocean County. Neuman’s sentencing serves as a reminder of the consequences individuals face for tax evasion, irrespective of their political affiliations or professional standing.