CLEVELAND (AP) — The owner of an Ohio company that makes American flags has been charged for failing to forward more than $160,000 in payroll taxes to the Internal Revenue Service.
The U.S. Attorney's Office in Cleveland says 51-year-old Richard Spencer was indicted on 15 employment tax-related counts Wednesday.
Prosecutors say Spencer controls a company called RS Sewing in Canton and classified some workers as independent contractors even though they are required to clock in and out and receive hourly wages. It's alleged that taxes were deducted from properly classified employees but that money wasn't sent to the IRS.
Prosecutors say Spencer was penalized after an audit in 2011 for improperly classifying employees as independent contractors yet continued the practice.
A message was left Wednesday with Spencer's attorney.