Former Virginia Business Owner Pleads Guilty to Employment Tax Fraud

A Virginia man and former business owner pleaded guilty yesterday to not accounting for and paying employment taxes to the IRS.

According to court documents and statements made in court, Richard E. Moore, of Augusta County, was the executive vice president and part owner of Nexus Services Inc., a Verona-based company that offered bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement. Moore, who exercised control over Nexus's business and financial affairs, was responsible for withholding Social Security, Medicare and income taxes from Nexus's employees' wages and paying those funds over to the IRS. He was also responsible for filing quarterly employment tax returns. For many quarters between the first quarter of 2015 and first quarter of 2024, Moore withheld the funds but did not pay them over to the IRS and did not file the returns.

In total, he caused a tax loss to the IRS of approximately $3.1 million.

Moore's sentencing will be scheduled for a later date. He faces a maximum penalty of five years in prison for each count of failing to pay employment taxes. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and Acting U.S. Attorney Zachary T. Lee for the Western District of Virginia made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys William Montague and Matthew Hicks of the Tax Division are prosecuting the case.