CHESTERFIELD COUNTY, Va. (WRIC) — A Chesterfield home health care director pleaded guilty to $1.3 million tax fraud after failing to pay over to the Internal Revenue Service (IRS) payroll taxes that were deducted from his employees’ paychecks, according to the United States Department of Justice.

From at least 2014 to 2018, 47-year-old David Corey Warren failed to pay over to the IRS payroll taxes from three different companies owned by his family, according to court documents.

Warren was the Director of Operations for Transitional Adult Residential Center, Transitional Home Care, and Elkridge Gathering Center, companies providing group homes, home care nurses, and daycare center services for mentally disabled adults in Chesterfield and Richmond.

When Warren was the Director of Operations, he was responsible for withholding the required Medicare, Social Security and federal income taxes from his employees’ wages, and paying that amount over to the IRS, according to the United States Department of Justice (DoJ).

The DoJ also stated Warren had an obligation to file Form 941s, the Employer’s Quarterly Federal Tax Return, but failed to file accurate returns with respect to each of the businesses.

Warren was using a third-party payroll company for various payroll services, including the preparation of Forms 941, according to the DoJ. Despite receiving accurate Forms 941 from the payroll company, Warren was found to be consistently evading the responsibilities set by the IRS by “deliberately and significantly underreporting the true value of the employment taxes due by filling Forms 941s that were different than those prepared by the payroll company, not paying over any employment taxes in some quarters, paying over only some of the employment taxes due in some quarters, or failing to report the employment taxes via Form 941 altogether in other quarters.”

Ultimately, over the course of four years, Warren failed to pay over $1.3 million in taxes to the IRS.

The Department of Justice further revealed that, rather than paying the amounts his businesses owed to the IRS, Warren used the withheld money to fund his and his family’s personal living expenses.

Those expenses included travel to the Caribbean, golf club memberships, private basketball lessons, luxury clothing and accessories. 

Warren’s sentencing is scheduled on October 13 and he faces a maximum penalty of five years in prison.

Here are the documents from the United States District Court for the Eastern District of Virginia, Richmond Division: