St. Charles executive pleads guilty to withholding millions in payroll taxes
The president and owner of Lane Tool and Manufacturing Co. Inc. in South Elgin pleaded guilty Wednesday to withholding $4.3 million in payroll taxes, according to a U.S. attorney's office news release.
Edward T. Arnieri of St. Charles issued paychecks to employees that reflected a withdrawal of money for IRS payroll taxes but then failed to forward the money to the IRS from 2010 to 2018, resulting in tax losses of more than $3.8 million, according to the release.
Arnieri's failure to pay employee taxes to the IRS led to inaccurate personal tax returns, too, adding $450,000 in losses from 2010 to 2017, according to the release.
Arinieri, 71, is scheduled for sentencing on Sept. 28, the news release said.
He could face up to five years in federal prison plus restitution to the U.S Treasury and the State of Illinois, according to the news release.