Florida Business Owner Sentenced to 4 Years for Payroll Tax Fraud

Linda Davis, owner of Majestic Seals & Stripes, sentenced to 4 years in federal prison for diverting employee payroll taxes.Photo byFredrik PosseonUnsplash

Linda Davis, 39, owner of Majestic Seals & Stripes, Inc., a pavement maintenance company in Clearwater, was sentenced today to four years in federal prison for payroll tax fraud, the U.S. Attorney’s Office for the Middle District of Florida announced.

U.S. District Judge Thomas P. Barber also ordered Davis to pay $719,049.62 in restitution for the unpaid taxes and related penalties.

According to court documents, Davis admitted that from June 2016 to December 2021, she failed to pay $557,249.62 in payroll taxes withheld from her employees’ paychecks to the Internal Revenue Service (IRS), instead diverting the funds for her personal use.

According to the Better Business Bureau (BBB), Majestic Seals and Stripes, Inc., a Clearwater-based parking lot maintenance company, has been in business for 16 years and holds an A+ rating despite not being accredited.

In February 2021, Davis applied for a Paycheck Protection Program (PPP) loan on behalf of Majestic Seals & Stripes, submitting a falsified IRS form as part of the loan application process.

As a result of the false information provided, her company received $161,800 in PPP funds, according to the U.S. Attorney’s Office.

“When you work somewhere, you trust that your employer will do the right thing,” said Ron Loecker, Special Agent in Charge of the IRS-CI Tampa Field Office.

“For an employer to take advantage of their employees for their own personal gain in such a blatantly criminal way is downright shameful. My hope is that this sentencing will urge others to always do right by their employees.”

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