Small Business Owner Sentenced to Federal Prison for Payroll Tax Fraud: A Lesson Learned for Entrepreneurs

Ex-business owner convicted of tax fraud and sentenced to prison

A Rapid City business owner was sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes to the government.

Chief Judge Roberto Lange sentenced 48-year-old Asher Wagh of Nanuet, New York to 14 months in federal prison followed by two years of supervised release. Lange also ordered Wagh to pay over $273,000 in restitution to the IRS.

Wagh, a co-owner of Captech International, LLC, acted as the sole manager of the company when he withheld money from employees’ paychecks between 2015 and 2017 but did not pay the IRS. 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. Wagh pleaded guilty to one of the 10 counts in October 2023. In exchange, the government agreed to drop the other nine charges.

At sentencing, Wagh faced a maximum of five years in prison, a $250,000 fine and up to three years of supervised release. Wagh is currently held at the Pennington County Jail awaiting transportation to a federal prison.

Leave a Reply