Lakewood Businessman Receives Prison Sentence for $10 Million Payroll Tax Evasion

Lakewood Businessman Receives Prison Sentence for $10 Million Payroll Tax Evasion

TRENTON, NJAn Ocean County businessman, Josef Neuman, 37, of Lakewood, New Jersey, has been sentenced to 30 months in prison for not paying more than $10 million in payroll taxes. This announcement was made by U.S. Attorney Philip R. Sellinger.

Neuman, who previously admitted guilt for willfully failing to remit payroll taxes in 2018 for one of his businesses, received his sentence from U.S. District Judge Michael A. Shipp in Trenton federal court. Neuman served as the CEO of a Lakewood-based company providing administrative services to health care facilities, including those he co-owned.

Responsible for overseeing the financial operations of these entities, Neuman neglected to pay the IRS required payroll taxes for the tax years 2017 and 2018, accruing over $10 million in tax liabilities. Despite being aware of these dues, Neuman prioritized other business expenditures and employee wages over settling the tax debts.

Further consequences include a two-year supervised release and an order to pay $11.2 million in restitution. The investigation, led by IRS – Criminal Investigation under Acting Special Agent in Charge Jenifer L. Piovesan, culminated in Neuman’s guilty plea. Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark represented the government in this case.