NEW ORLEANS - United States Attorney Duane A. Evans announced that CORNEL MARTIN, SR. (“MARTIN"), age 63, of Thibodaux, Louisiana, pled guilty today to failing to account for and pay over federal income taxes and Federal Insurance Contributions Act (“FICA") taxes, in violation of Title 26, United States Code, Section 7202.
According to court documents, MARTIN operated several businesses in Terrebonne Parish that provided temporary labor to shipyards and offshore oil rigs. MARTIN was the sole owner of each of the companies and controlled the companies’ finances. From 2012 to 2021, MARTIN’s various businesses withheld taxes from its employees’ paychecks, but MARTIN failed to pay over the withheld taxes to the Internal Revenue Service (“IRS") as required. All told, MARTIN’s willful failure to account for and pay trust fund and other taxes associated with his businesses between 2012 and 2021 resulted in a loss amount to the IRS between $1,500,000 and $3,500,000.
MARTIN faces a maximum prison sentence of five (5) years. Upon release from prison, MARTIN faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. MARTIN also faces payment of a mandatory $100 special assessment fee. U.S. District Judge Susie Morgan set his sentencing for June 15, 2023.
The U.S. Attorney’s Office would also like to acknowledge the work of the IRS on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon Long of the Financial Crimes Unit.
Source: U.S. Department of Justice, Office of the United States Attorneys