River City, VA – An Augusta County man has pleaded guilty to employment tax fraud, admitting to a scheme that resulted in a loss of approximately $3.1 million to the U.S. Internal Revenue Service (IRS).
Richard E. Moore, the former executive vice president and part owner of Nexus Services, Inc., appeared in court on January 7, 2025, where he admitted to failing to account for and remit employment taxes that were withheld from employees’ wages. Moore, who had control over the financial and business operations of the company, was responsible for ensuring that taxes such as Social Security, Medicare, quarterly employment taxes, and income taxes were withheld from employee paychecks and sent to the IRS.
According to documents from the U.S. Department of Justice (DOJ), Moore’s actions occurred between the first quarter of 2015 and the first quarter of 2024. Despite withholding the funds from employees’ wages, Moore failed to pay the taxes to the IRS and neglected to file the necessary returns. As a result, the IRS suffered a tax loss of approximately $3.1 million.
Nexus Services, Inc. is a company that provides bond securitization and immigration services, specifically to individuals detained by U.S. Immigration and Customs Enforcement (ICE). Moore’s plea comes after a lengthy investigation into the company’s financial practices, with the DOJ outlining that Moore was ultimately responsible for the failure to meet tax obligations.
Moore now faces serious consequences for his actions. He is scheduled for sentencing at a later date, where he faces a maximum penalty of five years in prison for each count of failing to pay employment taxes. In addition to prison time, Moore may also face a period of supervised release, restitution, and monetary penalties.
A federal district court judge will determine his sentence based on the U.S. Sentencing Guidelines and other statutory factors. The case serves as a stark reminder of the serious consequences businesses and their executives can face for failing to comply with federal tax laws.
