Virginia businesswoman pleads guilty to employment tax crimes

Date: March 27, 2024

Contact: [email protected]

A Virginia woman pleaded guilty last week to willfully failing to pay employment taxes to the IRS.

According to court documents and statements made in court, Gail Jones, of Dumfries, Virginia, 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 new Employer Identification Numbers and variations of her business' name.

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.

Jones is scheduled to be sentenced on June 27 and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.

IRS Criminal Investigation (CI) is investigating the case.

Trial Attorney Marissa Brodney of the Justice Department's Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

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