• Mon. Feb 26th, 2024

Rapid City Business Owner Sentenced for White-Collar Crime: Failure to Pay Payroll Taxes


Feb 13, 2024
Ex-business owner convicted of tax fraud and sentenced to prison

Asher Wagh, the owner of an ammunition component manufacturing business in Rapid City, was sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes to the government. In February 2021, a federal grand jury indicted Wagh on 10 counts of failure to withhold, properly account for, and pay over tax.

Between 2015 and 2017, Wagh withheld money from employees’ paychecks but did not pay it over to the IRS. According to court documents, he spent at least some of the money for his own personal use. The company dissolved in July 2022 and Wagh pleaded guilty to one of the 10 counts in October 2023. In exchange, the government agreed to drop the other nine charges.

Chief Judge Roberto Lange sentenced Wagh to 14 months in federal prison followed by two years of supervised release. He was ordered to pay over $273,000 in restitution to the IRS. At sentencing, Wagh faced a maximum of five years in prison, a $250,000 fine and up to three years of supervised release.

South Dakota crime statistics show that white-collar crimes are becoming more common in our state. For more information on this topic, contact Shalom Baer Gee at sgee@rapidcityjournal.com.

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