• Sat. Feb 24th, 2024

Rapid City Business Owner Sentenced to Prison for Payroll Tax Evasion

ByEditor

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

Rapid City business owner Asher Wagh has been sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes. The owner of an ammunition component manufacturing business, Wagh withheld money from employees’ paychecks and did not pay the IRS between 2015 and 2017. 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. Despite this, he pleaded guilty to just one count in October 2023. In exchange, the government dropped the other nine charges. At sentencing, Wagh faced a maximum of five years in prison, a $250,000 fine and up to three years of supervised release.

The company dissolved in July 2022 and South Dakota crime statistics show that this type of behavior is not uncommon among business owners who fail to comply with their legal obligations. For more information about South Dakota crime statistics, contact Shalom Baer Gee at sgee@rapidcityjournal.com.

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