BECKLEY, W.Va. – A McDowell County Assistant Prosecuting Attorney pleaded guilty Wednesday, February 3, to a federal tax crime, announced Acting United States Attorney Carol Casto. Jason Ray Grubb, 38, of Beaver, entered his guilty plea in federal court to failing to pay employment taxes.
Grubb admitted that while working as a lawyer in private practice, he had an employee from whom he withheld taxes.
Instead of withholding and paying those taxes as required under federal law, he kept the money and did not pay the Internal Revenue Service.
Grubb also admitted that he failed to pay personal income taxes for a number of years, and that he falsified vouchers sent to West Virginia Public Defender Services, including 51 days on which he billed for over 24 hours of work.
Grubb has agreed to pay restitution for his failure to pay over $247,000 in federal taxes, overbilling Public Defender Services more than $126,000, and not paying a financing company, Daniels Capital Corporation, for more than $29,000 in advances.
He faces up to five years in federal prison and a $10,000 fine when he is sentenced on May 12, 2016.
This case was investigated by the Internal Revenue Service and the West Virginia Commission on Special Investigations. Assistant United States Attorneys Meredith George Thomas and Eric Bacaj handled the prosecution.
The plea hearing was held before United States District Judge Irene C. Berger.