MLR

Chairman stole from pension fund, payroll taxes

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A Virginia man who stole $186,000 from an employee pension fund and failed to pay more than $2.2 million in employee payroll taxes has been sentenced to 18 months in prison and ordered to repay $1.6 million to the IRS.

businessman in handcuffs

William P. Danielczyk Jr. was convicted of failing to pay both the employee matching and the employee withholding of Innovative Logistics Technology, though the payroll taxes had been regularly withheld from employee paychecks.

Innovative provided technology-supported logistics services to the U.S. military and other defense organizations.

Danielczyk, who served as executive chairman of Innovative’s parent company, Innolog Holdings Corporation, from 2009 to 2011, also acted as asset custodian for the company’s pension account. But he did not send the contributions employees made on to the pension plan.

He also made a variety of personal purchases from company accounts, including a half-million-dollar executive suite at a Washington, D.C. football stadium and $40,000 for the sponsorship of a horse race in Virginia.

Danielczyk’s sentence will be served consecutively to a 28-month sentence he is serving for violating campaign-finance laws by illegally contributing nearly $200,000 to Hillary Clinton’s political campaigns in 2006 and 2008. He was found guilty in 2013 of reimbursing employees of his company, Galen Capital, and others for making contributions.

There were no allegations that Clinton or her campaign staff acted improperly.