State College man receives federal prison sentence for tax evasion
A State College man whose improper tax filings resulted in a federal tax loss of more than $211,000 was sentenced Monday to 18 months in prison.
No. 1 Cycle Center Harley-Davidson General Manager Jeremy Snyder in 2009 began paying personal credit card bills with the company’s funds, defense attorney Richard Maffett Jr. wrote in a 25-page memo to federal Judge Matthew Brann.
That additional income was not reported or taxed for seven years, Maffett wrote. Snyder has since repaid the owed taxes, but the IRS assessed nearly $223,000 in interest and penalties.
Snyder, 43, asked for probation, but Assistant U.S. Attorney Scott Ford wrote Snyder would “essentially receive no punishment” if he was not jailed.
“At no point has he stated that the money was necessary for unexpected bills, medical expenses, or some other purpose which may cause sympathy,” Scott wrote in his eight-page memo to Brann. “Rather, he simply took between $49,000 and $156,000 each year from (his) employer to pay for ‘ordinary household expenses,’ such as, ‘restaurant meals, car payments, home improvements and family vacations.’ ”
Company owner Earl Yearick chose not to pursue criminal charges after a 2016 audit revealed Snyder’s misappropriations, Maffett wrote. Yearick asked Brann not to imprison Snyder, saying he accepted responsibility.
“Through this whole ordeal, he has accepted responsibility and done everything he could to put his best foot forward and do what is best for #1 Cycle Center,” Yearick wrote. “... This whole experience has been one of learning and growth for him and I just pray that he is spared any jail time. Not just for himself, but for his family and selfishly for myself as well. I cannot stress enough how valuable of an employee and friend he is to me. I consider him like family and still do to this day.”
Snyder pleaded guilty in July to one count of tax evasion. He made more than $100,000 annually and “suffered few of the disadvantages” of people typically charged with tax evasion, Scott wrote.
Snyder liquidated three combined savings and retirement accounts and obtained a loan to pay the previously unpaid taxes, Maffett wrote.
Snyder, a father of four who has an accounting degree from Susquehanna University, was ordered by Brann to report March 12 to the federal prison nearest to Centre County.
Snyder’s incarceration will cost taxpayers about $56,000, Maffett wrote. Once released, Snyder is set to be under supervised release for two years.
This story was originally published February 13, 2020 at 10:52 AM.