CAPE CORAL, Fla. — The owner and office administrator for Nastar Roofing pleaded guilty to conspiracy to commit tax fraud.
On Thursday, the Department of Justice says owner William Skaggs Jr. and administrator Billie Adkison paid employees predominantly in cash to avoid paying taxes they knew were owed to the federal government.
Prosecutors say Adkison maintained the payroll. The DOJ said in a release typically one of more employees would take significant amounts of cash out of the payroll at the end of the week.
Between 2013 and 2023, employees took out more than $21 million from the company's bank accounts to pay the employees.
"Skaggs and Adkison knew, and intentionally caused, Nastar to not withhold taxes from the cash payments to employees," the DOJ said in a statement. "Nastar also did not pay its own share of FICA taxes on these wages."
The two face up to five years in prison.
As part of the plea agreement, they have agreed to make full restitution to the federal government for the taxes the company avoided. Additionally, they have to pay an upfront partial restitution payment of $1 million prior to sentencing.
Their sentencing date has not yet been scheduled.
