OGDEN, Utah (ABC4) – An Ogden business owner has been sentenced to federal prison after failing to pay over half a million in taxes.

Authorities have identified the suspect as Daniel Fry, 46.

Fry owned and operated four now-shuttered healthcare businesses in the Ogden area including Burch Creek Homecare and Hospice LLC (which closed in 2015), Scrub World (which closed in 2018), Medical Billing Advantage LLC, and Country Niche LLC (both of which closed in 2020.)

Fry has been sentenced to one year and one day in federal prison after pleading guilty for tax crimes.

According to the U.S. Department of Justice, says Fry was responsible for handling the businesses’ payroll along with issuing employee paychecks and collecting trust fund taxes for business. Authorities say Fry should have paid the employer portion of the trust fund to the IRS, but he failed to do so.

From Jan. 2013 to Dec. 2016, authorities say Fry withheld employee paychecks and kept the trust fund taxes for himself, despite owning it to the IRS. 

In total, authorities say Fry failed to pay the IRS $568,590 in fees owned by his multiple businesses.

“Failure to pay taxes is a serious crime,” said United States Attorney Andrea T. Martinez. “This case is proof that we will hold business owners accountable if they violate their duty to pay employment taxes to the United States Government.”

Fry further failed to pay to the IRS the employer portion of the trust fund taxes owed by his businesses. In total, from January 2013 to December 2016, fry owed and willfully failed to pay over to the IRS $568,590 owed by the businesses.

“This investigation and prosecution demonstrates the toll that willful violations of the United States tax laws takes on not only the system, but on the average taxpayer,” said Albert Childress, Special Agent in Charge, IRS-Criminal Investigation. “Mr. Fry’s actions hurt the taxpayers from whom he took withholdings but never paid over, he also harmed competing businesses who followed the law. The mission of IRS-Criminal Investigation is to enforce the tax laws of this country to instill confidence in and maintain a fair tax system for all.”

This case was prosecuted by Assistant United States Attorneys from the United States Attorney’s Office for the District of Utah. The case was investigated by the IRS-Criminal Investigation team.