U.S. Attorney Jessica D. Aber | U.S. Department of Justice
U.S. Attorney Jessica D. Aber | U.S. Department of Justice
ALEXANDRIA, Va. – A Dumfries woman was sentenced today to one year and three months in prison and ordered to pay $950,100.18 in restitution for not paying employment taxes to the IRS.
According to court documents and statements made in court, Gail Jones, 57, was a co-owner who also served as Director, Vice President, and President of S&G Property Management Inc. (S&G), a parcel delivery service. Between 2013 and 2018, Jones caused income, Social Security, and Medicare taxes to be withheld from S&G’s employees. However, Jones did not pay those withholdings to the IRS as she was required to do. Moreover, to thwart potential IRS levies and other collection activities, Jones opened new bank accounts using other individuals’ social security numbers, as well as new Employer Identification Numbers and variations of her business’ name. Between December 2016 and December 2018, she withdrew over $450,000 in cash from business bank accounts instead of paying the taxes owed.
In total, Jones caused a tax loss to the IRS of approximately $950,000.
Additionally, Jones fraudulently applied for two Paycheck Protection Program (PPP) loans, which were part of a COVID-19 relief program intended to provide loans to certain businesses to help them retain their employees or stay afloat during the pandemic. Jones applied for the loans even though S&G was no longer operating. She fraudulently received $20,800 in loans.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.
IRS Criminal Investigation investigated the case.
Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia and Trial Attorney Marissa Brodney of the Justice Department’s Tax Division prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-50.
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