Ron Paolucci, at one time one of many winningest racehorse homeowners in North America who co-owned 2013 Breeders’ Cup Juvenile Fillies (G1) winner Ria Antonia , was sentenced Sept. 16 to 52 months in jail for tax fraud and evasion and ordered to pay greater than $38.9 million in restitution to the Inner Income Service.
His sentencing got here greater than 18 months after Paolucci entered a responsible plea on two counts in a Texas federal courtroom for his actions whereas serving as co-founder and an worker of American Administration Staffing.
In keeping with courtroom data, the prosecution alleged Paolucci for seven consecutive years ending in 2020 did not remit greater than $13 million to the Treasury Division of worker withholdings for revenue, Medicare, and Social Safety taxes due from American Administration Staffing and different entities underneath the corporate’s umbrella. Paolucci, 55, was employed by AMS from roughly 2011-20 and had management over AMS’ enterprise affairs, together with approving funds and controlling AMS’ financial institution accounts, the federal government stated.
The offenses occurred within the Dallas space throughout the jurisdiction of the US District Court docket for the Northern District of Texas.
The U.S. Lawyer’s Workplace for the Northern District of Texas issued a press launch Sept. 17 saying the sentencing by U.S. District Decide Sam A. Lindsay. Assistant U.S. Lawyer Marty Basu prosecuted.
“We have been proud to accomplice with IRS-CI on this essential case,” U.S. Lawyer Leigha Simonton stated within the launch. “We stand able to prosecute any employer who pockets staff’ payroll taxes and people who in any other case refuse to fulfill their tax obligations.”
Christopher J. Altemus Jr., particular agent accountable for IRS legal investigation for the Dallas area workplace, added within the launch that Paolucci’s “failure to remit withheld taxes is just not solely a breach of belief however a critical crime with extreme penalties.”
He famous that Paolucci did not report his private compensation and was ordered to pay roughly $10 million in restitution for his private tax obligations.
Paolucci owned quite a few stakes winners as Loooch Stables, probably the most achieved of which was Ria Antonia, who he campaigned in partnership with Christopher T. Dunn. Second throughout the wire within the 2013 Breeders’ Cup Juvenile Fillies, she was awarded first place by way of the disqualification of She’s a Tiger for interference. Loooch Stables later received graded stakes races as a co-owner in Crucial and Struggle Story .
Paolucci entered horse possession in 2011 and expanded to race a big steady of horses. Not counting partnerships, Loooch Stables had 3,710 begins from 2011-18, rating fourth in wins nationally in 2014 and 2015, seventh in 2016, and second in 2017 and 2018.
He later owned horses as Ron Paolucci Racing from 2019-22.