HACKENSACK, N.J. — An orthopedic surgeon from Hackensack was charged today in an 11-count indictment by a federal grand jury for failing to pay over payroll taxes to the IRS and to report a foreign bank account, U.S. Attorney Craig Carpenito said.
An investigation was conducted by special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur.
Brian Mehling, 54, established Mehling Office Management, LLC to pay his employees and himself. For the past 13 years, he failed to pay his quarterly employment taxes on that entity plus others he owned and controlled, and has thus been involved with the IRS Collection Division since. According to court documents, Mehling spent most of his earnings on other ventures such as promoting his stem cell research company, his personal rental properties and other leisurely activities, which included world travel.
To cover individual income, social security and Medicare tax obligations, Mehling withheld payroll taxes from the gross salary and wages of his businesses’ employees. Mehling’s businesses withheld tax payments from its employees’ checks for at least 10 tax quarters, and he failed to pay over the payroll taxes in full due to the IRS.
Mehling also had a bank account in France which held north of $10,000 last year.
The indictment includes 10 counts of failing to collect, account for, and pay over payroll taxes for one quarter in fiscal years 2014 and 2018; two quarters in 2017; and three quarters in fiscal years 2015 and 2016. Each of the 10 counts carry a maximum penalty of five years in prison and a $250,000 fine.
The final count — failing to report a foreign bank account holding more than $10,000 for 2018 — carries a maximum penalty of five years in prison and a quarter of a $250,000.