Thread: MO: Lake of the Ozarks developer pleads guilty on tax charge

Lake of the Ozarks developer pleads guilty on tax charges

News-Leader staff

Michael G. Schlup, a developer of luxury condominiums at the Lake of the Ozarks, pleaded guilty to 14 criminal charges today.

Charges include failing to withhold taxes from his construction workers, many of whom were undocumented workers, or remit those payroll taxes and file the appropriate return with the state of Missouri.

Schlup is scheduled to be sentenced Oct. 17. Under the terms of the plea, the state is recommending that Schlup receive concurrent sentences of five years in prison on each of the fourteen counts, be ordered to pay the maximum fine on each count totaling $140,000 and be ordered to pay $24,873.36 in costs.

In addition, Schlup is required to pay all applicable state and federal taxes and penalties prior to sentencing.

Attorney General Jay Nixon’s office began its investigation after learning of reports of one worker’s death and several serious worker injuries at the Plaza Gardens construction site. Nixon also said that he had reason to believe that as many as 30 undocumented workers may have been working at the site. Schlup paid his workers in cash and didn’t deduct withholdings from the wages. Employees at the site worked 70 hours a week, and the undocumented workers were paid approximately $8 an hour.

http://www.news-leader.com/apps/pbcs.dl ... e=printart

This is great news. I hope it goes across the country and sends out shock waves.

We need to get it into bigger news media like Fox News and Lou Dobbs.

I don't think we can continue to imprison people like this. It is going to get very expensive, all of this imprisonment that the more over the top conservatives want. Fines, I say, but not so much that he goes bankrupt or resumes doing what he was doing. Fines would give the governments enough to keep prosecuting. Other wise it's just one more drain on the taxpayers.

I sent it to Sean Hannity.

I disagree if I didn't pay taxes I would go to jail. We need to do that and we need to put a real scare into contractors or anyone else that their family will be affected by illegal activities that hurt the American Citizen and our government.

Captainron wrote:

I don't think we can continue to imprison people like this. It is going to get very expensive, all of this imprisonment that the more over the top conservatives want. Fines, I say, but not so much that he goes bankrupt or resumes doing what he was doing. Fines would give the governments enough to keep prosecuting. Other wise it's just one more drain on the taxpayers.

That's B.S., Captainron, and you know it. Sending those who hire illegal immigrants to prison is exactly what we need to do! This is the one message that all employers of illegal immigrants will understand loud and clear. Unfortunately fines are all to frequently just considered as part of the cost of doing business. The fear of losing your business, being separated from your family, and not having much to look forward to but a bunk and three meals a day would do wonders in getting the attention of illegal immigrant employers. This is one major piece of the enforcement puzzle that has been missing.

By the way, what did you mean by "I don't think we can continue to imprison people like this"? To my knowledge we haven't been imprisoning illegal immigrant employers, not at a noticeable level anyway. Throw a few thousand in jail and the hiring of illegals will come to a screeching halt!

By "imprisoning people like this" what I meant was that the burden of incarcerating people seems to be growing. But I have said that we spend too much money on prisoners. I respect a lot of what Sheriff Joe Arpaio is doing, for example. There was recently a bust of four illegal alien meth dealers in Clatsop CO. Oregon. The Grand Jury apparently was very PO'd so they asked for conviction under RICO law. Some of the defendants got upwards of twenty years in prison. The investigation also took six months and involved two counties.

But the same counties can't even keep their roads and streets maintained. So what I am saying is we better figure out a cheaper way to take care of the criminal element. Ideally all the illegal alien criminals would be sent back and our border secured; that would be cheaper than housing them for twenty years, at least the way it is done now. I think the fine should go beyond what "is just considerd the cost of doing buiness." but it would be a net gain rather than a net loss. I'm not sure what you think a fair sentence is for this episode.

Since I work in construction I am well aware of all the cheating that goes on. Yeah, and it was going on well before the employment of illegals became a major issue. There's a bunch of redneck types who have been fleecing the public, too. This country is sick. Obviously I'm not for illegals taking construction jobs or I wouldn't be participating on this board. It's too bad that hardly anyone I work with would even consider participating; they're too busy chugging beer, which is one of the reasons companies started hiring ultra cheap labor. If you ask me, America kind of asked for this problem.

Captainron wrote:

I'm not sure what you think a fair sentence is for this episode.

That would depend upon the number of illegals knowingly hired. How about 3 months per illegal up to a maximum of 24 months (no early out)? Of course that 24 months is only for knowingly hiring illegal immigrants. There are other things, such as tax evasion, aiding the illegal with fake documents, etc. that could extend the time.

Developer sentenced for tax charges involving illegal workers
Dec 17, 2007

JEFFERSON CITY, Mo. (AP) -- A developer of luxury lake condominiums was sentenced Monday to probation for not paying taxes on his construction workers, including some who were illegal immigrants.

Under a plea deal, Michael Schlup avoided prison by agreeing to pay more than $815,000 in back taxes, $140,000 in fines and $24,873 in court costs to the state and the Camden County prosecutor's office. He also has been banned from conducting business in Missouri.

Schlup pleaded guilty in June to 14 counts of failing to withhold or submit payroll taxes to the state.

Attorney General Jay Nixon contends Schlup used as many as 30 undocumented workers while building the Plaza Gardens on the Lake condominium complex near Sunrise Beach on the Lake of the Ozarks, a popular Midwest tourist destination.

Nixon announced the charges against Schlup, listed as a resident of Leawood, Kan., in April 2006, and said he began investigating after reports of one worker's death and several injuries at the Plaza Gardens construction site. The charges alleged that Schlup paid workers about $8 an hour in cash for working about 70 hours a week.

Employee Apolinar Sandoval was killed on March 23, 2005, and co-worker Hector Torres was injured when they fell four stories from a platform at Plaza Gardens.

www.hdnews.net

Sounds to me like he is getting off easy.

The fines should be more - and I don't mind bankrupting them. They are and have bankrupted a lot of Americans, and our social programs.