Wilmington businessman pleads guilty to conspiring to defraud IR - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

Wilmington businessman pleads guilty to conspiring to defraud IRS

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WILMINGTON, NC (WECT) - The former CEO of assisted living facilities in North and South Carolina pleaded guilty Tuesday to conspiring to defraud the Internal Revenue Service.

Ronald E. Burrell, who lives in Wilmington, is the former Chief Executive Officer of Caremerica, Inc.  According to a charging document, Burrell co-owned and operated several assisted living facilities.  Caremerica, Inc. managed those facilities.  Caremerica was also partly owned and operated by Burrell. 

One of his responsibilities was to collect, report and pay federal employment taxes to the IRS.  However, the Caremerica companies accrued more than $4.5 million in employment tax liabilities between 2003 and 2006, according to a news release.  Federal agents say Burrell filed, or caused to be filed, fake IRS forms that reported full payment of employment taxes.

Court documents allege that in 2003, Burrell acquired partial ownership of Partners Pharmacy Services, Inc.  That group provided prescription drug and related services to the assisted living facilities.  In 2005, Burrell sold PPS, received $1.6 million and tried to conceal that from the IRS, according to a news release.

Burrell has agreed to pay restitution of $4.8 million.   He will be sentenced on April 9.

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