A Chandler man has been sentenced in Phoenix federal court to three years in prison and ordered to pay $7.3 million in restitution to the Internal Revenue Service after he previously pleaded guilty to tax evasion.
U.S. District Judge David G. Campbell also sentenced William “Larry” Dorsey, 56, to three years of supervised release.
Dorsey owned and operated several professional employment organizations, including Pinnacle Employee Group Inc. and Pinnacle Planning Group Inc., which contracted with small business owners to provide payroll services.
Dorsey collected federal employment taxes from his clients but instead of paying the taxes to the IRS as he was contracted to do, kept a significant portion of the taxes for his own personal use and other business ventures, the IRS said.
He filed false employment tax returns with the IRS, which underreported the taxes due from PEG and PPG from 2011 through 2014.