NJ Business Owner Pleads Guilty to Failing to Pay Over $937,000 in Employee Taxes

Ocean County

By: Richard L. Smith

Gerard Artz, 44, of Brick has pleaded guilty to failing to collect and pay over nearly $1 million in employment taxes, US Attorney Philip R. Sellinger announced today.

Artz, who owned a construction company operating in both Brick and New York City, admitted in Trenton federal court to withholding employment taxes from 2016 to 2020 but failing to remit them to the IRS.Federal officials said the total amount owed is $937,943. Artz faces up to five years in prison and a $250,000 fine. He has agreed to pay the full amount in restitution.

The charges stem from a pattern of financial misconduct that began around 2016, when Artz’s company, under his direction, withheld taxes from employees’ paychecks but did not pass those funds along to the IRS.

This type of tax evasion undermines the financial integrity of federal tax systems and defrauds not only the government but also the employees who rely on accurate records of their tax contributions.

“This case highlights the importance of businesses adhering to tax laws and the severe consequences when they fail to do so,” said US Attorney Sellinger.

“Employers have a responsibility to collect and remit payroll taxes, and when they choose to keep that money, they are stealing from both their employees and taxpayers.”

As part of his plea agreement, Artz has accepted responsibility and agreed to repay the full amount owed to the government. He is scheduled to be sentenced on February 5, 2024, before US District Judge Robert Kirsch.

Artz faces a potential maximum sentence of five years in prison and a fine of up to $250,000. His plea agreement also includes a commitment to making restitution to the IRS.

This case serves as a reminder to employers about the serious legal implications of failing to meet tax obligations.Prosecutors emphasized that the law requires strict adherence to tax payment protocols and that violations can lead to severe penalties.

Artz’s sentencing will determine the extent of his punishment, but his guilty plea marks an acknowledgment of his wrongdoing and a step toward resolving the financial misconduct.