Florida Payroll Company Owner Pleads Guilty to Employment Tax Fraud

A Florida man admitted in federal court to withholding more than $20 million in taxes from employees’ paychecks and failing to remit those funds to the IRS. Matthew Brown, owner of Elite Payroll in Martin County, pleaded guilty to employment tax fraud and filing a false tax return, according to the Department of Justice (DOJ).

Court documents and statements revealed that between 2014 and 2022, Brown operated payroll services for small businesses across St. Lucie, Martin, and Palm Beach Counties. His company, Elite Payroll, withheld Social Security, Medicare, and federal income taxes from employees’ wages. However, instead of transferring these funds to the IRS as required, Brown pocketed the money.

During this period, Brown charged his clients the full amount of their tax liabilities but filed false tax returns that underreported the amounts owed. He used the stolen funds to purchase luxury assets, including a multimillion-dollar home, commercial and residential real estate, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a collection of luxury cars, including Ferraris, Porsches, and Rolls Royces.

In total, Brown’s actions resulted in a tax loss exceeding $22 million. These funds were meant to be held in trust for Elite Payroll’s clients and paid to the IRS on their behalf.

Brown faces a maximum prison sentence of five years, supervised release, restitution, and monetary penalties. His sentencing date has not yet been set. The federal district court judge will determine his sentence after reviewing the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by IRS Criminal Investigation. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida announced the plea.

The case is being prosecuted by Trial Attorneys Andrew Ascencio and Ashley Stein of the Tax Division and Assistant U.S. Attorney Michael Porter for the Southern District of Florida. Former Assistant U.S. Attorney Diana Acosta contributed to the investigation.