Insurance Agent Headed To Prison

By: WOWT Email
By: WOWT Email

A former insurance agent faces prison time. He was sentenced Monday for failing to pay over withholding and FICA taxes.

John Stanley Clabaugh, Jr., 69, faces 6 months in prison and 3 years of supervised release, with an additional 6 months of home confinement.

He also has to pay up. Restitution will run him $135,109.92.

The US District Attorney's Office says Clabaugh was the owner of a Crete insurance agency.

Investigators say Clabaugh always withheld the federal income tax and FICA taxes from his and his employees’ paychecks, until 2001 when he stopped paying these withheld funds over to the IRS.

Clabaugh also stopped filing the required quarterly forms.

This case was investigated by the IRS, Criminal Investigations Division.

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