• Sat. Mar 2nd, 2024

Manufacturer withholds payroll taxes from employees, receives federal prison sentence


Feb 13, 2024
Ex-business owner convicted of tax fraud and sentenced to prison

Asher Wagh, the owner of an ammunition component manufacturing business in Rapid City, was sentenced to federal prison for withholding payroll taxes from employees. The company dissolved in July 2022, and Wagh pleaded guilty to one count of failure to properly account for and pay over tax in October 2023. In exchange, the government agreed to drop the other nine charges.

Wagh withheld money from employees’ paychecks between 2015 and 2017 but did not pay the IRS. According to court documents, he spent at least a portion of the money for his own personal use. In February 2021, a federal grand jury indicted Wagh on 10 counts of failure to withhold, properly account for, and pay over tax. He faced a maximum of five years in prison, a $250,000 fine, and up to three years of supervised release at sentencing.

Chief Judge Roberto Lange sentenced Wagh to 14 months in federal prison followed by two years of supervised release. He was also ordered to pay over $273,000 in restitution to the IRS. South Dakota crime statistics show that this type of fraud is relatively common and can have serious consequences for both individuals and businesses involved. For more information on this topic or any other crime-related issue in South Dakota, contact Shalom Baer Gee at [sgee@rapidcityjournal.com](mailto:sgee@rapidcityjournal.com).

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