OKLAHOMA CITY - The former president of TEEMCO, LLC, pleaded guilty Friday to federal tax fraud for not paying to the IRS the federal payroll taxes withheld from wages of employees for five years.
Back in April, Gregory Lorson was charged with one-count Information with willful failure to collect and pay over federal payroll taxes to the IRS.
Lorson was the president and CEO of TEEMCO, LLC, from 2010 until the business closed in mid-2015.
Back in 2013, TEEMCO, an environmental sales and consulting company, bought out Oklahoma City's iconic Gold Dome with plans to revitalize, however, that plan fell through two years later amid rumors of money mismanagement at the Edmond engineering firm.
Officials say Lorson used the monies to fund TEEMCO’s extensive advertising campaign and to pay other creditors and expenses.
At Friday's hearing, Lorson pleaded guilty to the one-count Information.
He admitted that TEEMCO withheld federal payroll taxes from employees’ wages and that he knew TEEMCO had a duty to pay over those withheld taxes to the IRS. He also admitted that he directed TEEMCO employees not to forward the withheld payroll taxes to the IRS and that he failed to file with the IRS quarterly federal tax returns for TEEMCO from 2010 to 2015.
As part of his plea agreement, Lorson agreed to pay $3,003,220.47 in restitution to the IRS for withheld payroll taxes and other federal taxes that TEEMCO never paid to the IRS for company employees.
He also agreed to pay an additional $542,162.53 in restitution to the Oklahoma Tax Commission for TEEMCO employees’ state taxes that were withheld but never paid to state tax authorities.
Lorson faces up to five years in federal prison, plus a fine of $250,000 and three years of supervised release.
He will be sentenced in approximately 90 days.