In a troubling case out of Illinois, a business owner has been accused of committing multiple tax crimes. Steven Cordell, who operates a company called Starfish Transportation Inc., is facing serious legal charges for failing to pay taxes and lying on loan applications. This story shines a light on the responsibilities that business owners have when it comes to taxes and the consequences of not meeting those responsibilities.
The Allegations Against Steven Cordell
The charges against Steven Cordell are quite significant. According to the indictment, which is a formal accusation made by a grand jury, Cordell did not pay over $600,000 in employment taxes. Employment taxes are important because they help fund Social Security and Medicare, two programs that provide health care and support for people as they get older or if they become disabled. When businesses pay these taxes, they are also helping to ensure their employees have access to these essential services.
Cordell was responsible for withholding these taxes from his employees’ wages. This means that he was supposed to take a portion of his employees’ earnings to pay the IRS (Internal Revenue Service) on their behalf. However, the indictment claims that he did not pay the full amount of the taxes that he withheld. This is a serious issue because it can affect not only the business’s employees but also the funding of vital government services.
In addition to failing to pay employment taxes, Cordell is also accused of not filing business tax returns for the years 2019 through 2023. Business tax returns are required documents that businesses must submit to the IRS to report their income and expenses. By not filing these returns, Cordell may have made it difficult for the government to determine how much he owed in taxes.
Fraudulent Loan Applications
The indictment also reveals that Cordell submitted false applications to government programs designed to help businesses during the COVID-19 pandemic. Two of these programs are the Paycheck Protection Program (PPP) and the Coronavirus Economic Relief for Transportation Services (CERTS) program. These programs were created to provide financial assistance to businesses that were suffering due to the pandemic.
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Cordell allegedly submitted applications on behalf of his business, claiming that he was eligible for assistance. However, the indictment states that he provided false information, including unfiled tax returns and misleading financial data. This means that he may have tried to get money he wasn’t entitled to, which is considered fraud.
In total, Cordell is accused of receiving $247,822.51 in fraudulent PPP loans and $598,574.21 in fraudulent CERTS grants. This adds up to a significant amount of money that he allegedly received through dishonest means. These funds were intended to help businesses keep their doors open and pay their employees during a difficult time, but Cordell’s actions could have diverted that assistance from those who truly needed it.
The Legal Consequences
If Steven Cordell is found guilty of these charges, he could face serious consequences. The penalties for each of the charges vary, but they can add up to a lengthy prison sentence. For example, he could receive up to 30 years in prison for filing a false loan application. Additionally, he faces a maximum of 20 years for wire fraud, 5 years for failing to pay employment taxes, and up to 1 year for each count of not filing tax returns.
The case is being handled by federal authorities, including the IRS Criminal Investigation and the Small Business Administration’s Office of Inspector General. These agencies are tasked with investigating financial crimes and ensuring that businesses comply with tax laws. Trial attorneys from the Justice Department’s Tax Division will be prosecuting the case, meaning they will present evidence and argue in court that Cordell should be held responsible for his actions.
It is essential to understand that an indictment is just an allegation. This means that Cordell is presumed innocent until proven guilty in a court of law. The legal process will determine whether he committed the crimes he is accused of, and he will have the opportunity to defend himself against these serious charges.
