Pleasanton resident Muzaffar Hussain has pleaded guilty in federal court for failing to pay employment taxes while working as chief financial officer of Crossroads Home Health Care, Inc., according to prosecutors.
Hussain, 68, entered the guilty plea June 10, stating that he knew he was in charge of accounting for taxes that should be removed from employees' salaries for social security, income tax and other taxes but did not fulfill that requirement, according to a news release from the U.S. Attorney's Office, Northern District of California.
A grand jury indicted Hussain last July on 13 counts of making or subscribing a false tax return, 17 counts of willful failure to account and for pay over taxes and one count of structuring transactions to evade reporting requirements.
"Nevertheless, for each pay period between July 1, 2004, and Feb. 27, 2008, Hussain transferred funds in an amount equal to, or close to, the amount of employment taxes from the Bank of America account to other bank accounts," the news release stated. "Hussain thereafter used the monies, including the trust fund taxes, to fund other business and personal interests."
Hussain is currently released on bond, according to federal prosecutors. His next court appearance will be in January. The maximum sentence he could face is five years in prison and $250,000 in penalties.