The former chief financial officer of Leland, N.C.-based assisted living chain Caremerica Inc., Michael Elliott, pleaded guilty last week to several charges after being served with an indictment last year accounting for 28 tax offenses in North Carolina, according to the U.S Department of Justice, and must now pay nearly $5 million in restitution.
At his hearing in Wilmington, N.C., Elliott pleaded guilty to one count of conspiring to defraud the IRS, 25 counts of failing to pay over employment taxes, one count of filing a false tax return, and one count of obstructing the due administration of the tax laws.
In his position of Caremerica CFO, Elliott was in charge of overseeing the company’s collection, reporting, and payment of federal taxes. Additionally, he was also the co-owner and operator of a North Carolina chain of assisted living facilities (ALFs) that were managed by Caremerica.
Caremerica Inc. accumulated more than $4.5 million in employment tax liabilities from 2003-2006 under Elliot’s leadership. During his time with the company, the former CFO filed false IRS forms and failed to pay employment taxes.
During his time with Caremerica, he also had partial ownership in Partners Pharmacy Services, Inc. (PPS), a company that provided prescription drugs to the company. After selling his ownership, Elliott deposited the $1.4 million check he received form the transaction into a bank account in someone else’s name.
Elliott will pay $4.8 million in compensation for his actions and will begin serving the court’s sentence November 5.
Written by Erin Hegarty