• Sat. Mar 2nd, 2024

Local Businessman Sentenced for Withholding Payroll Taxes and Stealing Employee Funds: A Case of Rapid City White-Collar Crime

ByEditor

Feb 13, 2024
Ex-business owner convicted of tax fraud and sentenced to prison

Asher Wagh, a co-owner of an ammunition component manufacturing business in Rapid City, was sentenced to federal prison for withholding $273,000 in payroll taxes from employees’ paychecks between 2015 and 2017. Wagh pleaded guilty to one of the 10 counts of failure to withhold, properly account for, and pay over tax in October 2023. In exchange, the government agreed to drop the other nine charges.

Chief Judge Roberto Lange sentenced Wagh to 14 months in federal prison followed by two years of supervised release. The judge ordered him to pay back the stolen funds and face a maximum of five years in prison, a $250,000 fine and up to three years of supervised release at sentencing.

Wagh’s company dissolved in July 2022 after he failed to pay his employees’ salaries and withheld money from their checks for personal use. According to court documents, Wagh spent at least a portion of the money on himself. In February 2021, a federal grand jury indicted Wagh on 10 counts of failure to withhold, properly account for, and pay over tax.

South Dakota crime statistics show that white-collar crimes such as tax fraud are becoming more prevalent in the state. For more information on this topic, contact Shalom Baer Gee at sgee@rapidcityjournal.com.

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