Owner of 3 Virginia Beach businesses pleads guilty to $2.7M tax fraud

VIRGINIA Seashore, Va. – A Virginia Beach front female pleaded guilty to failing to pay out payroll taxes from her three companies to the Inner Revenue Service, ensuing in a decline of about $2.7 million to the IRS.

According to court paperwork, 53-calendar year-previous Wendy Brockenbrough unsuccessful to pay back payroll taxes from at the very least 2011 to 2019. Brockenbrough is the the greater part owner of East West Development, Inc., Sea Trader Maritime, LLC and Coastal Pipeline Companies, LLC.

As the three companies’ principal owner, Brockenbrough was dependable for withholding the essential work taxes and spending that sum over to the IRS.

She also allegedly failed to file quarterly federal tax returns for each individual of her 3 businesses.

Brockenbrough issued her employees weekly paystubs and yearly Form W-2s indicating that the correct payroll taxes ended up staying withheld from her employees’ paychecks. She utilised the withheld taxes to aid her life style courtroom documents say some of the things Brockenbrough purchased included a Regulator center console boat for somewhere around $126,000, a Hatteras 60-foot yacht for roughly $820,000 and a Jeep Wrangler for close to $41,000.

Brockenbrough tried to conceal her actions by lying to her accountants and stating that she manufactured the payments. To guidance her promises, she solid IRS documents and Quickbook entries demonstrating the taxes experienced been compensated.

Her actions prompted an approximate $2,721,268 decline in unpaid payroll taxes to the IRS.

Brockenbrough faces a most penalty of 15 decades in jail when she is sentenced on September 8.

Her legal professional, James Broccoletti, launched the adhering to statement on Brockenbrough’s guilty plea:

“Mrs. Brockenbrough instantly acknowledged responsibility for her steps and has demonstrated outstanding regret for her actions. She has pled guilty rapidly and has paid back again currently close to 50 percent of the unpaid taxes as proof of that. She is dedicated to producing the government whole.”