North Royalton Man Sentenced to Prison for Failure to Pay Taxes Collected from Employees and Embezzling from an Employee Health Care Plan

Acting U.S. Attorney Michelle M. Baeppler announced that John George Medas, 69, of North Royalton, Ohio, was sentenced today by U.S. District Judge Sara Lioi to 24 months in prison and ordered to pay $562,505,13 in restitution.  Medas previously pleaded guilty to failure to pay over taxes from employees and embezzling from his employees’ healthcare plan.

According to court documents, Medas owned and operated various manufacturing businesses and served as President of Guarantee Product Specialties, Inc., Fulton Manufacturing Industries, LLC, and FMI Products, LLC.  Court documents state that while operating these businesses, Medas withheld payroll tax from employees but failed to pay these taxes to the IRS.  Court records show that from April 2014 to January 2019, Medas failed to pay over $760,725

In addition, court documents state that between July and September 2016, Medas withheld $3,807 in employee pre-tax health contributions and embezzled the funds.

This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor.  The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough.