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Date: 08-09-2017
Case Style:
United States of America v. Douglas Corriher
Federal Courthouse - Greensboro, North Carolina
Case Number: 1:16-cr-00205
Judge: N. Carlton Tilley
Court: United States District Court for the Middle District of North Carolina (Guilford County)
Plaintiff's Attorney: Frank Chut, Nathan Brooks and Jeffrey A. McLellan
Defendant's Attorney: Alexander Heroy and Ed Hinson
Description: Greensboro, NC - Former Bank Vice President Pleads Guilty To Employment Tax Conspiracy
A former bank vice president pleaded guilty on July 24, 2017 to conspiring to defraud the United States.
According to documents filed with the court, Douglas Corriher, 68, was the Vice President at a South Carolina-based bank. From 2009 through 2010, Corriher extended several factoring loans, through nominee entities, to a bank customer who operated staffing companies in North Carolina. Through the use of nominees, he was able to circumvent federal regulations limiting the amount of money that can be loaned to a single entity.
The staffing company promised its clients that it would pay the payroll taxes for thousands of low-wage temporary workers that it supplied to its clients. The company issued Forms W-2 and filed employment tax returns showing that the funds had been withheld from the wages of the workers. In fact, the payroll taxes were not paid over to the Internal Revenue Service (IRS). Corriher was aware that the company owed more than $1 million in payroll taxes. Notwithstanding this, Corriher continued to make advances on the loans knowing that the fund of unpaid payroll taxes would enable the staffing company to repay the loan and allow the bank to continue collecting high rates of interest on the loan advances along with lucrative fees.
Defendant faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation Office of Inspector General, who conducted the investigation.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Outcome: Guilty
Plaintiff's Experts:
Defendant's Experts:
Comments: