Canfield physician charged for withholding taxes from employees but not paying the money over to government

A physician from Canfield was charged with failing to pay over Social Security, Medicare and employment taxes collected from his employees, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office.

Nicholas M. Garritano, 54, is charged with a willful failure to pay over taxes. 

"This defendant took out the taxes from his employees but kept the money for himself," Rendon said. "He victimized his workers and those who paid their fair share of taxes."

"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," Ficco said. "The failure to pay over withheld taxes is a serious offense and IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."

The indictment alleges that during 11 quarters spanning from 2009 through 2012, Garritano was president and sole shareholder of a corporation run by the name “Dr. N.M. Garritano, Inc.,” located in Canfield. Garritano was responsible for the corporation’s business and financial operations. Garritano caused the corporation to pay taxable wages and salaries to its employees, from which federal income and FICA taxes were withheld, according to the indictment.

Garritano filed quarterly forms with the Internal Revenue Service on behalf of the corporation relating to the employment taxes. Although the corporation withheld substantial employment taxes from the wages of its employees for each quarter, the defendant failed to pay over the full amount of the withheld taxes to the IRS, according to the indictment.

The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.

If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation. 

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.