Local News

Assisted living exec admits to cheating on federal taxes

Posted January 4, 2012

— The chief executive of a bankrupt North Carolina corporation that ran a dozen assisted-living homes across North Carolina and South Carolina has admitted trying to cheat the federal government out of collected taxes.

Ronald Burrell of Wilmington agreed to plead guilty and is free without bond until his sentencing in April.

The chief executive of Leland-based Caremerica Adult Care Inc. pleaded guilty Tuesday to conspiring to commit tax fraud after investigators accused him of trying to avoid paying the government $4.5 million in employee income and Social Security taxes.

Prosecutors say Burrell falsely filed forms with the Internal Revenue Service reporting the corporation paid its tax bill.

WRAL News reported in 2006 that employees of The Meadows of WIlson, a facility owned by Caremerica, walked off the job because the company couldn't pay them.

The StarNews of Wilmington reported (http://bit.ly/A7wTR0) Burrell has agreed to pay $4.8 million in restitution.

The company's liquidation is pending in bankruptcy court.

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  • sunshine1040 Jan 4, 2012

    Treat your employees right and they will do a gopd job for you rip them offf and they will rip you off Cheat the goverment and they will they with hold their payments from you probably not unless you really did make a mistake

  • no contest Jan 4, 2012

    In my opinion this is proof once again that legal, law abiding, working and taxpaying US citizens DO NOT matter to our government AT ALL anymore - unless we can afford to pay off the right people.

    We ONLY matter if our tax dollars aren't enough to support the public assistance crowd or fund corrupt politicians, both democrat and republican.

    Work hard people, millions of free loaders out there need your money.

  • Mr. Middle of the Road Jan 4, 2012

    bande118, most govermnent agencies are designed to provide a service, not turn a profit. They are different animals from private industry. There are problem agencies but most I deal with are well run. Ideal with both the private sector and the governemnt and I trust the government to pay me. Cant say the same for private. Industrys such as assisted living facilities I require payment up front. Too many bad experiences. That being said, I am not a casting negative caricature of your entire industry. I deal with many operators like you who are caring and professional individuals who do a good job and run good facilities. But the nature of the industry itself is ideal for abuse and there are some very sleazy operators out there. I think you realize that because you have to compete against them. My comment was directed at the fact that we can't count on private industry to be any more efficient or capable than we can the government. That argument holds no water.

  • aightCPA Jan 4, 2012

    No, the employee would not be liable for the assessment for unpaid payroll taxes. Anyway, I'm pretty sure he withheld the amount from the paychecks he did pay but never turned it to the IRS or NC.

  • bande118 Jan 4, 2012

    Mr. Middle:

    I provide personal care services for my residents and I have one now that owes me over $40,000 in unpaid bills because her family is robbing her blind. I haven't thrown her out on the street because I have a heart. I am a privately owned business who does a heck of a job. Show me a government run program and I will show you a failing broke one.

  • Mr. Middle of the Road Jan 4, 2012

    And some people want to trust our health care system to private enterprise?

  • SmokeWagon Jan 4, 2012

    ..."The StarNews of Wilmington reported (http://bit.ly/A7wTR0) Burrell has agreed to pay $4.8 million in restitution...."

    Sounds like this crook STILL has plenty of cash....and OUT OF JAIL with NO BAIL on top of it all...!!!! The good ol boy club in North Carolina is STILL ALIVE and WELL..!!!!! If you or I had stolen $1,000 from the IRS we would STILL be in jail...!!!!!

  • timbo10.0 Jan 4, 2012

    "Timbo, if the employer withheld the taxes then the employee is considered by the IRS to have paid the taxes..." - luvbailey

    Well, that's good for the employees. Thanks for clearing that up.

  • bande118 Jan 4, 2012

    I know the guy personally. We are in the same industry. He has always been very arrogant. Plus back when he wasn't paying the staff he couldn't be reached for comment cause he was on vacation in Costa Rica. He is a major reason assisted living facilities have to fight to have a good reputation. What goes around comes around.

  • luvbailey Jan 4, 2012

    Timbo, if the employer withheld the taxes then the employee is considered by the IRS to have paid the taxes, even if the employer fails to turn the withheld taxes over to the IRS. The individual with responsibility for paying the taxes to the govt can be held personally liable for the unpaid taxes. Usually this is the company owner or ceo but ocassionally falls onto the bookkeeper especially if he or she had check signing authority. Trust fund taxes are not dischargable in bankruptcy.

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