Louisiana Business Owner Pleads Guilty in Connection with Collecting Employee Taxes and Not Submitting them to the IRS

New Orleans, Louisiana - A Louisiana business owner has pleaded guilty in connection with collecting employee taxes and not submitting them to the IRS.

On March 14, 2023, United States Attorney Duane A. Evans announced that Cornel Martin Sr. (“Martin”), age 63, of Thibodaux, Louisiana, pled guilty today to failing to account for and pay over federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.

Martin, according to court filings, had many businesses in Terrebonne Parish that supplied temporary labor to shipyards and offshore oil rigs. Martin was the only owner of each of the businesses and was in charge of their finances. Martin's different businesses deducted taxes from its employees' paychecks from 2012 to 2021, but Martin failed to pay the withheld taxes to the Internal Revenue Service ("IRS") as required. Between 2012 and 2021, Martin's willful failure to account for and pay trust fund and other taxes related to his enterprises resulted in a loss to the IRS of between $1,500,000 and $3,500,000.

Martin faces a maximum term of five (5) years in prison. Martin faces a sentence of supervised release of up to (3) three years and/or a fine of $250,000 or the greater of twice the defendant's gross gain or twice the defendant's gross loss to any person under Chapter 18, United States Code, Section 371. Martin must also pay an obligatory $100 special assessment fee. His sentence date has been set for June 15, 2023, by U.S. District Judge Susie Morgan.

The US Attorney's Office would also like to thank the IRS for its assistance in this issue. Assistant United States Attorney Brandon Long of the Financial Crimes Unit is prosecuting this case.