California nursing home owner found guilty of withholding $3 million in taxes

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A nursing home owner in San Francisco was found guilty of failing to pay more than $3 million in employee taxes to the IRS.

Jack Easterday, who owned several nursing homes in the Bay area, was found guilty in federal court on 47 counts of failing to account for and pay payroll taxes, prosecutors said. He faces up to five years in federal prison and a fine of up to $10,000 for each count.

Easterday withheld more than $3 million from employee checks from 1998 to 2002 and thwarted IRS efforts to collect the taxes by pleading poverty. Meanwhile, he paid himself and his wife exorbitant salaries and directors' fees.

These actions occurred while he was president of Employee Equity Administration of Alameda, which operated nine California nursing homes and software firm Skilled Logic Systems Inc.