AccuPay Victims Won’t be Pursued; Del. James Convinces Comptroller Franchot; Bel Air Police Continue to Investigate Alleged Fraud

From the office of Del. Mary-Dulany James:

Del. Mary-Dulany James, representing both Cecil and Harford Counties, has successfully convinced Maryland’s top tax collector not to penalize businesses who have become victims of alleged financial fraud by a the Harford County Payroll Company known as AccuPay.

AccuPay is being investigated for allegedly defrauding small businesses by collecting payroll taxes but not directing those taxes to the state and federal governments. After hearing from a large number of her constituents concerned that back taxes unpaid by the payroll company would be pursued for collection by the State of Maryland, Del. James has been working with numerous State officials including Comptroller Peter Franchot to ensure these victims are protected from further financial burden.

In addition to as many as 10 complaints received by the Bel Air Police Department, AccuPay is being sued by five clients making similar allegations and claiming losses of more than $465,000, according to state records. “We must make sure that our State protects those honest hardworking small busniesses that might have had their payroll tax payments misdirected or delayed,” Del. James said. Comptroller Franchot indicated his office will not be pursuing back taxes or penalties and will not be pressing charges against small businesses deceived or misled by AccuPay.

Del. James and Franchot agreed that it is important to work closely with law enforcement officials to ensure that any criminal activity is prosecuted fully and the victims are fairly compensated for any loss they have suffered. “It is very important the State recognizes my constituents have already been penalized once by the blatant fraud committed under AccuPay’s scam, and it remains a top priority for me to see that these companies are not penalized a second time,” said Del. James.

Bel Air police are investigating whether the reported amounts of state and federal tax withholdings of AccuPay’s clients coincide with the amounts paid, and whether money withdrawn from businesses’ accounts to pay taxes were the amounts remitted to the IRS and Maryland comptroller.

Police have not determined how many clients AccuPay had, but said potential victims could number in the hundreds.