The Morning Journal (Lorain, OH)
Man sentenced to prison for embezzlement, tax crimes
A 61-year-old Rocky River man is headed to prison for embezzlement and tax crimes totaling more than $780,000, according to a news release.
C. David Snyder, a Rocky River business executive, was sentenced to two years behind bars.
Snyder also was ordered to pay $781,000 in restitution.
A federal jury convicted Snyder earlier this year on six charges related to embezzling $126,000 from an employee retirement fund and collecting nearly $860,000 from his employees, but not paying the money to the IRS, the release said.
Snyder served as chairman, president and chief executive officer of Attevo Inc., a technology consulting company headquartered in Cleveland.
He also served as chairman and primary shareholder at Ruralogic Inc., headquartered in Bryan, Ohio.
Attevo employees prepared financial records and schedules, quarterly and annual returns and reports for Attevo, at Snyder’s direction, according to court documents.
Snyder ranked Attevo’s payables in order of importance, the documents say.
Snyder, on behalf of Attevo, and the IRS in 2011, agreed to a payment plan of $48,350 per month to repay the company’s outstanding payroll tax liabilities.
Attevo made 10 payments totaling $483,500 then made no further payments, according to court documents.
Snyder withheld payroll tax from employees but failed to pay it to the IRS, the documents say.
He failed to pay over $328,355 of employee’s portion of payroll taxes in 2010 and $530,778 in 2012, according to court documents.
Snyder created a 401(k) and profit-sharing plan for Attevo employees in 2009.
Ruralogic was added to the plan in 2010 and it was funded through employee payroll deferrals.
Between 2010 and 2012, Snyder failed to pay into the plan $126,000 in contributions and loan repayments withheld from Attevo and Ruralogic employee wages, according to court documents.
During the time of his criminal conduct, instead of paying Attevo’s employment taxes, Snyder paid $20,000 per month for the rental of a personal residence in Lakewood and his vacation home in Chautauqua, N.Y., leases on four vehicles and other personal expenses, according to trial testimony and court documents.
He also used Attevo’s American Express to pay personal expenses, including women’s clothing at Ann Taylor, Nieman-Marcus and other stores, beauty supplies at Oro Gold in Las Vegas, travel to resorts in Florida and for pool/spa renovations, according to trial testimony and court documents.
Snyder earned income from Attevo totaling $1.6 million between 2009 and 2012, according to the court documents and trial testimony.
“This defendant embezzled money from his employees and pocketed taxes he took out of their paychecks, which he used to pay for his vacation home, swimming pool renovation and to otherwise fund his lifestyle,” said U.S. Attorney Justin Herdman. “This sentence demonstrates that we take fraud seriously and criminals will be held accountable, whether they operate on street corners or in corner suites.”