Ocean County Man Pleads Guilty To Skipping Payment Of $10M In Payroll Taxes To IRS

TRENTON, NJ — A Lakewood man has admitted failing to pay more than $10 million in payroll taxes stemming from his ownership of several businesses, U.S. Attorney Philip R. Sellinger announced Wednesday.

Josef Neuman, 37, of Lakewood, pleaded guilty before U.S. District Judge Michael A. Shipp to a charge of willful failure to pay over payroll taxes for one of his businesses in 2018.

Neuman was chief executive officer of a business in Lakewood. The company provided administrative services to operators of nursing homes and other health care facilities, including at least approximately 20 entities co-owned and operated by Neuman, according to court documents and statements.

As a person who controlled the companies’ financial affairs, Neuman had the responsibility to collect, truthfully account for, and pay over to the IRS the companies’ payroll taxes. During tax years 2017 and 2018, Neuman failed to pay over to the IRS over $10 million in payroll taxes owed by the companies. Neuman knew that payroll taxes were due and owing to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue.

The charge to which Neuman pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $10,000. Sentencing is scheduled for Dec. 13.