June 3, 11

NEWS / Owner of Patient Transportation Company Sentenced to Prison for Failing to Turn Over $487,975 in Pay

TRENTON - Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a Gloucester County man was sentenced to state prison today for failing to turn over $487,975 in state and federal payroll taxes on behalf of employees of his patient transportation company.

According to Director Taylor, James Gillespie, 46, of Williamstown, was sentenced to five years in state prison by Judge Irvin J. Snyder in Camden County. He pleaded guilty on Feb. 14, 2011, to charges of second-degree theft by failure to make required disposition of property received and second-degree misapplication of entrusted property and property of government. Gillespie entered a civil consent judgment to pay a total of $582,740 to the State Division of Taxation and U.S. Treasury, representing the back payroll taxes owed by his company, plus penalties and interest of $94,765 to be paid to the state.

In pleading guilty, Gillespie admitted that from 2001 through 2006, he failed to remit payroll taxes withheld from employees of his company, Wellness Enterprises Corp., totaling $487,975, consisting of $105,440 due the State of New Jersey and $382,535 due the Internal Revenue Service. Wellness Enterprises, which was based in Cedar Brook and did business as Excel Medical Transportation Services, provided non-emergency patient transportation services to hospitals, nursing homes, assisted living programs and private residences. It is no longer in operation. The theft charge relates to the state taxes, and the misapplication of entrusted property charge relates to the federal taxes.

The charges were contained in a June 10, 2010 state grand jury indictment obtained by the Division of Criminal Justice Financial and Computer Crimes Bureau. The indictment is the result of an investigation by the State Division of Taxation’s Office of Criminal Investigation.

Deputy Attorney General Denise Grugan prosecuted the case for the Division of Criminal Justice Financial and Computer Crimes Bureau and represented the state at the sentencing. Auditor Kevin Curry and Supervising Auditor Debra Lewaine investigated the case for the Division of Taxation’s Office of Criminal Investigation.

http://www.nj.gov/oag/newsreleases11/pr20110603a.html

Tags: criminal investigation,