United States Chief District Judge Fred Biery handed down prison sentences to two individuals on Saturday for their roles in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas.
Larry Kimes, the former manager of AccountTex Financial Services, was sentenced to 12 years in prison followed by three years of supervised release. The sentencing follows Kimes entering a guilty plea to Klein tax fraud conspiracy and mail fraud conspiracy last month. He must also pay restitution in the amount of $132 million.
Charles Pircher, the manager of a series of Professional Employer Organizations (PEOs) in San Antonio, was sentenced to 11 years in federal prison followed by three years of supervised release. Pircher will also pay $132 million in restitution after pleading guilty to Klein tax fraud conspiracy and mail fraud conspiracy last November.
Authorities reported in February that three other individuals also pleaded guilty in connection with this scheme. By pleading guilty, the defendants admitted to stealing more than $133 million from the clients of several of the PEOs that they owned and operated. Co-conspirators in the scheme stole money from the clients that was meant for payroll services, taxes, and insurance fees.
The investigation of this case was led by agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Thomas J. McHugh prosecuted the case.