Local Roofing Contractor Pleads Guilty to Defrauding IRS

WHEELING -

Roofing and general contractor Stephen J. Gretchen, 44, of McMechen, WV was convicted of failing to report cash payments to his employees and fraudulently collecting insurance benefits for staged damage to his vehicle Wednesday in Wheeling.

According to United States Attorney William J. Ihlenfeld, II, Gretchen admitted he knowingly under-reported the wages, tips and other compensation that he paid to his employees. He admitted that in 2011 he paid certain employees in cash "off the books." In a press release, Ihlenfeld said Gretchen reported he paid no wages, tips or other compensation to his employees. In actuality, he paid about $22,880 to his employees.

Gretchen also admitted to filing a false claim with his insurance company for a camping truck. He said he paid an employee to deliberately and repeatedly damage the trailer, but reported that the damage was caused by a hit-and-run accident. The insurance company sent Gretchen a check for $27,776.85 via FedEx in June 2012.

Gretchen pled guilty to Filing a False Employee Quarterly Federal Tax Return and one count of mail fraud. On the first count he faces up to three years in prison and a fine of up to $250,000. On the second count, he faces up to 20 years in prison and a fine of up to $250,000.

More:
Local Roofing Contractor Pleads Guilty to Defrauding IRS