The owner of a southern Kentucky business that provided services to people with developmental disabilities did not pay the government more than $ 250,000 deducted from employee paychecks, according to a federal charge.
Ace R. Jones II, 44, pleaded guilty Monday in federal court to one charge.
Jones owned and operated a business in Somerset called Cumberland Behavior Group LLC, which had around 50 employees between 2017 and 2019, according to the court record.
The company operated homes where employees cared for people with intellectual disabilities, according to a document in a separate bankruptcy case.
Over five different reporting periods in 2017, 2018 and 2019, Cumberland Behavior Group withheld a total of $ 259,648 in federal income, Social Security and Medicare taxes from employee checks, but no did not return the money to the Internal Revenue Service, according to Jones. court agreement.
Meanwhile, Jones made Cumberland spend thousands of dollars for his own benefit or to promote the business, according to the plea deal.
Jones’ bankruptcy lawyer said Cumberland Behavior Group began to have financial problems due to changes in state Medicaid policy that resulted in delays in payments to the company .
However, the US trustee alleged in a bankruptcy dispute that Jones and a partner had “grossly mismanaged” the business, paying Jones and others large salaries while failing to pay taxes.
The charge against Jones carries a sentence of up to five years in prison.