• Fri. Mar 1st, 2024

Local Business Owner Sentenced for Failing to Pay Millions in Payroll Taxes

ByEditor

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

Asher Wagh, the owner of an ammunition component manufacturing business in Rapid City, was sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes. Chief Judge Roberto Lange ordered Wagh to serve 14 months in prison, followed by two years of supervised release. The judge also mandated that Wagh pay over $273,000 in restitution to the IRS.

Between 2015 and 2017, Wagh withheld money from his employees’ paychecks but did not remit it to the government. According to court documents, he spent at least a portion of the money for his own personal use. In February 2021, a federal grand jury indicted Wagh on 10 counts of failure to withhold, properly account for, and pay over tax. The company dissolved in July 2022 and Wagh pleaded guilty to one of the charges in October 2023. In exchange for his guilty plea, the government dropped the remaining nine charges.

At sentencing, Wagh faced a maximum of five years in prison and a fine of up to $250,000 along with three years of supervised release. However, he was ultimately sentenced to only 14 months in prison and two years of supervised release. Wagh is currently being held at the Pennington County Jail awaiting transportation to a federal prison. South Dakota crime statistics can be obtained from the Office of Attorney General for more information by contacting Shalom Baer Gee at sgee@rapidcityjournal.com

Leave a Reply