Ocean County, NJ, man didn’t pay $10M in payroll taxes, now he’s going to prison

An Ocean County man is headed to prison for not paying over $10 million in payroll taxes.

Josef Neuman of Lakewood, NJ, Sentenced

On Friday, 37-year-old Josef Neuman of Lakewood was sentenced to 30 months behind bars and he was ordered to pay $11.2 million in restitution.

Federal authorities say Neuman was the CEO of a business in Lakewood that provided administrative services to operators of nursing homes and other health care facilities, including at least approximately 20 entities co-owned and operated by Neuman.

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During tax years 2017 and 2018, Neuman failed to pay over $10 million in payroll taxes owed by the companies.

Neuman knew that payroll taxes were due and owing to the IRS at this time, but continued to pay other business expenses and employee salaries, instead of the unpaid taxes, while tax liabilities continued to accrue.

In addition to the prison term, Neuman will be under two years of supervised release once he is out of prison.

U.S. Attorney Philip Sellinger credited special agents with the IRS for their work in this case.

The government was represented by Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark.