PALM BEACH GARDENS, Fla. – The owner of several Florida healthcare companies pleaded guilty Wednesday to failing to pay employment taxes and neglecting to file his personal income tax returns, causing the IRS to lose more than $10 million, the Department of Justice confirmed in a news release on Friday.
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Investigators said Paul Walczak, of Palm Beach Gardens, managed a network of healthcare businesses under names like Palm Health Partners and Palm Health Partners Employment Services.
At its peak, authorities confirmed that PHPES employed over 600 workers and handled more than $24 million annually in payroll.
Between 2016 and 2019, investigators said Walczak withheld about $7.5 million in payroll taxes from employees but failed to send the funds to the IRS.
He also avoided paying $3.48 million in Social Security and Medicare taxes owed by his businesses, according to a news release. Despite being penalized by the IRS in 2014 for similar violations, authorities said Walczak continued his misconduct.
While failing to meet tax obligations, investigators confirmed Walczak funneled over $1 million from company accounts to purchase a yacht and transferred hundreds of thousands to his personal accounts. He also used business funds for luxury purchases at high-end retailers, including Bergdorf Goodman and Cartier.
Additionally, officials said Walczak did not file personal income tax returns for 2019 and 2020, despite earning sufficient income to require it.
In total, his actions caused a tax loss of $10,912,334.80, detectives confirmed.
Walczak is set to be sentenced on Feb. 28, 2025.
Authorities said he faces up to five years in prison for the employment tax charge and one year for failing to file his tax returns. He could also be ordered to pay restitution, monetary penalties, and serve supervised release.