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| | Jonathan DeVeaux, Inglewood Nightclub Owner, Posts $25,000 With Los Angeles Superior Court For Workers' Compensation Insurance And Tax Fraud
By Lonce LaMon - January 8, 2016
Jonathan DeVeaux, 44, an Inglewood, California nightclub owner, surrendered himself to the Los Angeles Superior Court yesterday. He allegedly defrauded all the way around with workers’ compensation premium fraud, payroll tax fraud, and California sales tax fraud.
He posted bond for $25,000.00.
DeVeaux, as the part-owner and operator of Los Angeles Entertainment, Inc., doing business as Savoy Entertainment Center in Inglewood, was booked on multiple counts of insurance and tax fraud totaling more than 1.1 million dollars. At his nightclub he allegedly underreported the number of employees working for him, in order to reduce his reportable payroll. As a result he underpaid his workers’ compensation premium to his insurer, State Compensation Insurance Fund, by more than $143,000.00 between 2009 and 2014.
During the same period, DeVeaux allegedly paid many employees in cash. In this way he avoided paying the California Employment Development Department more than half a million dollars in payroll taxes.
DeVeaux was also charged with sales tax evasion by underreporting his sales to the California Board of Equalization between 2006 and 2014. An audit of the nightclub’s sales records revealed the business actually underreported sales by $5.4 million. While DeVeaux collected sales tax from nightclub patrons, he allegedly kept more than half a million dollars which he did not remit to the state.
“DeVeaux’s alleged underground economy operation cheated his patrons, other businesses, the state and his insurer,” said Insurance Commissioner Dave Jones. “These are not victimless crimes. Everyone involved paid for DeVeaux’s crimes, including California taxpayers.”
Detectives from the Department of Insurance worked simultaneously with investigators from the Employment Development Department and the Board of Equalization to unveil DeVeaux’s fraudulent activities.
If convicted on all counts, DeVeaux faces up to 18 years in prison.
lonce@adjustercom.com; Lonce LaMon, journalist, all rights reserved Lonce LaMon and adjustercom. Article gleened from News Release issued by California Department of Insurance on January 8, 2016. |
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