Gregory Ott, owner and president of Xpress Pay, Inc., a payroll service company appeared before a magistrate following his arrest on July 7, 2014.
The majority of XP’s clients were small business owners who had a professional employer organization arrangement with XP. XP collected payroll taxes from its clients for the quarterly tax periods ending March 31, 2008, through March 31, 2010. These payroll taxes were deposited into XP’s business account and although XP had sufficient funds on hand, Ott failed to make all of XP’s federal tax deposits for the quarterly tax periods ending March 31, 2008 through March 31, 2010.
Specifically, Ott failed to pay $1,051,907.76 for 2008, $1,499,865.24 for 2009, and $568,279.06 for 2010, the total amount being $3,120.052.06.
According to the indictment, Ott willfully attempted to evade and defeat the payment of tax due and owing by XP to the United States of America for the years 2008 through 2010. Ott allegedly concealed, from the Internal Revenue Service, the true nature, source, and location of his and XP’s income and assets. From 2008 through approximately March of 2010, Ott transferred, or had transferred for him, approximately $1,486,350.00 from XP’s business account to bank accounts he owned and controlled. During the years 2008 through 2010, OTT also took, or directed other XP employees to take, $160,320.00 directly from XP’s business account to make mortgage payments on houses he owned.
On July 7, 2014, Ott entered a plea of not guilty to all pending counts. Jury trial is set for August 19, 2014 at 09:00 AM in U.S. Post Office Building, 101 W. Goodwin St, Prescott, AZ.