Failure to pay employee taxes lands New Jersey business owner in prison

The owner of Cedarbrook, New Jersey-based patient transport company Wellness Enterprises was recently sentenced to five years in prison after failing to remit nearly $488,000 worth of payroll taxes to employees, the Gloucester County Times reports.

Of the $488,000, more than $105,000 was due the state and nearly $382,535 was due the Internal Revenue Service.

At a hearing in February, James Gillespie pleaded guilty to second-degree theft by failure to make required disposition of property received and misapplication of entrusted property and property of government.

Because Wellness Enterprises - which provided non-emergency patient transportation to hospitals and long-term care facilities - is now defunct, Gillespie has agreed to pay $582,740 to the New Jersey Division of Taxation and the U.S. Treasury, in addition to $94,765 in penalties and interest to the state.

Elsewhere in New Jersey, a time and attendance dispute erupted between the owners of The Brownstone in Paterson and its former head waiter, according to the Record. Sandy Fernandez accused the restaurant's owners of violating the Fair Labor Standards Act by not paying him overtime.

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