The former owner of a New Castle, Del. transportation company was sentenced to prison on Friday for failing to pay more than $500,000 in state taxes over a five-year period.
Éole / Foter
“Employers who fail to pay their taxes place an additional burden on law-abiding, tax-paying citizens who have to pay more than their fair share for important public services like schools and police,” Biden said.Kristin L. Aulenbach, the former president of Eagle Transportation Services, a chauffeur and employee transportation service formerly based in New Castle, pled guilty on April 12 to one felony count of failure to pay withholding taxes to the Delaware Division of Revenue and one misdemeanor count of failure to pay unemployment taxes to the Delaware Department of Labor. The conviction was announced by Delaware Attorney General Beau Biden.
In pleading guilty, Aulenbach admitted that Eagle Transportation failed to pay hundreds of thousands of dollars in taxes between October, 2005 and March, 2011, the release from the Attorney General’s Office stated.
She was sentenced by Superior Court Judge Richard R. Cooch to three months in prison, followed by two years of probation. She was ordered to pay restitution of $528,000 to Delaware, including $265,000 to the Department of Labor for unemployment taxes and interest and $263,000 to the Division of Revenue for income taxes the company withheld from employee paychecks but failed to pay to the state.
The case cam out of an an investigation initiated by the Delaware Department of Finance, Division of Revenue Criminal Investigation Unit and the Delaware Department of Labor, Division of Unemployment Insurance during an ongoing review of tax records. When the investigation revealed evidence of the violations the agencies referred the case to the Attorney General’s office for criminal prosecution, the release stated.
