Terra Ferguson, from New London, NC, was sentenced to 14 months in prison after pleading guilty to one count of failing to collect, account, or pay for payroll taxes.
Court documents indicate that from 1992 through September 2016, Ferguson, was employed as the office manager at a pediatric office, where she had complete control over the office’s finances. Part of Ferguson’s responsibilities included collecting, accounting for, and paying over to the IRS the payroll taxes which were deducted from the employee’s wages.
From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes and an additional $35,472 for the employer’s share of employment taxes that should have been turned over to the IRS. Instead, Ferguson used the money to pay her personal credit cards, funded personal business ventures involving a mountain cabin rental and bar, paid for personal vacations and issued checks to herself in the amount of $1.4 million, all from the business’ bank accounts.
In addition to jail time, Ferguson will serve three years of supervised release and pay restitution in the amount of $374,101.