PHOENIX — An Arizona man has been indicted for allegedly stealing more than $700,000 in federal employment taxes from Phoenix-area businesses over a two-year period.
Internal Revenue Service officials say John Chandler Propstra is accused of tax evasion and is scheduled to be arraigned Sept. 13 in U.S. District Court in Phoenix.
Authorities say Propstra owned and operated entities that acted as outsourced human resources departments for his small- and medium-sized business clients who didn’t want to handle payroll or other functions internally.
Investigators say Propstra failed to pay the IRS nearly $711,000 in employment taxes from his clients’ businesses in tax years 2010 and 2011.
They say Propstra spent most of the money on trips to Hawaii and Las Vegas, gambling online and at casinos, jewelry and tickets to sporting events.