Federal Fraud Charges Against Teaneck Accountant Dismissed

Federal fraud charges against a Teaneck accountant and his business partner have been dismissed, according to court papers filed in early March.

The accountant, for allegedly taking money from clients for payroll taxes and instead using it for operating expenses at his former payroll services company, Total Time Solutions. Then-business partner Mark Holzwanger was also accused in the 2010 indictment.

U.S. District Judge Joel A. Pisano found federal prosecutors did not provide sufficient evidence to allow a jury to determine that Muhlstock and Holzwanger engaged in the fraud charge, according to the judge’s March 8 opinion.

A jury was deadlocked on Muhlstock, court papers say. Holzwanger was found guilty on two counts of wire fraud, but acquitted on a third.

“The Government has not proven its contention that Holzwanger and Muhlstock ‘caused TTS clients to be lied to and falsely reassured so that they could use the clients’ money to buy time’ beyond a reasonable doubt,” the decision said. “The Government offered no evidence that these two Defendants personally lied to any TTS clients in order to defraud them of their money.”

Two New York men also charged, Russell Speranza and Stephen Guthartz, entered plea agreements in the case. 

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