United States of America v. Danny L. Nickelson Jr.

St. Louis, Missouri, criminal defense lawyer represented the Defendant charged with failing to pay 10 years of employment taxes totaling $774,081.

Reported by Kent Morlan

Danny L. Nickelson Jr., 54, a Jefferson County businessman, owned General Physiotherapy, a manufacturer and distributor of massage and percussion devices used in medicine and physical therapy. For tax years 2013 through 2022, Nickelson withheld Social Security and Medicare taxes and federal income taxes from employees’ pay but did not pay that to the IRS. He also did not match the withheld taxes and pay that amount, as required. Nickelson did the same thing for tax years 2013-2015 for Tomichi Industries, a small plastic distributor and supplier for General Physiotherapy. Nickelson was sole shareholder of Tomichi.

Nickelson used the tax money for the operating expenses of the business and personal expenditures including food, travel, retail purchases and credit card bills.

Nickelson “put at risk his employees’ tax liabilities and future federal benefits” and stole “money from the U.S. tax system that funds the federal government and the social safety net,” a sentencing memorandum by Assistant U.S. Attorney Jonathan Clow says.

Nickelson pleaded guilty in February to two counts of failure to pay over trust fund taxes.

The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Jonathan Clow prosecuted the case.

The Defendant was found guilty and was sentenced to 18 months in prison.