‘Ghost employees’ help woman evade federal taxes
BRIDGEPORT, Conn. (AP) — A former Connecticut woman has pleaded guilty to creating “ghost employees” for her home health care staffing agency in order to avoid paying taxes.
Federal prosecutors say 57-year-old Theresa Foreman, formerly of Madison, pleaded guilty Monday to tax evasion.
Authorities say Foreman, who of St. Cloud, Florida, took money out of her company by depositing or cashing checks written to people who did not actually work for the company.
From May 2012 until December 2013, approximately $413,000 in payroll checks to these “ghost employees” were deposited into accounts controlled by Foreman’s brother.
Foreman failed to report the amounts that she received through the scheme on her federal tax returns for 2012, 2013, and 2014.
Foreman is free on $10,000 bond pending sentencing at a date to be determined.