Belinda Jo Juarez, a 53-year-old resident of Boerne and the majority owner as well as CEO of Superior Home Health Service, was sentenced to three years in prison for her involvement in tax evasion and embezzling health insurance premiums that had been taken from employees at the San Antonio-based company.
Juarez was responsible for taking insurance contributions out of her employees' paychecks. She failed to forward those payments to insurance providers around August 2017.
As a result, employees incurred medical costs without knowing their insurance coverage had already been canceled or was inactive.
In addition, she was found guilty of willfully failing to collect or pay over federal payroll tax contributions, specifically withholding these funds from employees' paychecks between 2016 and 2019 but not remitting them to the Internal Revenue Service.
As part of her sentencing, Juarez was ordered to pay restitution totaling $617,738.65 to former employees and $3,667,098.88 to the IRS. She was also fined $20,000 and will be required to serve three years of supervised release following the completion of her prison term.
Source: https://www.ksat.com/news/local/2025/01/08/boerne-woman-sentenced-to-3-years-in-prison-for-tax-evasion-embezzlement-of-health-care-company/
Commentary
In the above matter, one of the crimes was collecting, but not paying, the insurance contributions of employees.
Collecting insurance premiums from employees' paychecks and then failing to remit these funds to the designated insurance provider constitutes a grave breach of fiduciary duty and is considered a criminal offense.
Such offenses fall under both state and federal laws, often prosecuted as embezzlement, theft, and sometimes even wire fraud, given the financial harm imposed on workers - who may only discover the breach when denied medical care or claims. Most jurisdictions treat these violations severely because they undermine trust in the employer-employee relationship and threaten the well-being of affected individuals.
As mentioned in the above matter, employees incurred medical costs because of the crime.
As a result, convictions can carry substantial penalties, with federal sentences for willful failure to pay over withheld sums or embezzlement of benefits frequently resulting in prison terms ranging from one to five years, depending on the amount involved, the duration of the offense, and whether there was intent to defraud or conceal. Fines, restitution, and supervised release are also common components of sentencing.
To guard against such misconduct, employers must ensure strong internal controls, such as mandatory two-person authorization for benefit payments, routine reconciliation of payroll deductions with actual remittances, and external audits of benefits administration.
Whistleblower policies and anonymous reporting channels can empower staff to report suspected irregularities without fear of retaliation. Prompt investigation of employee complaints and clear communication about insurance coverage status help deter fraudulent behavior and reinforce a culture of accountability.
The final takeaway is that employers who take these precautions not only protect themselves from criminal liability but also bolster trust among their workforce, safeguarding both their reputation as well as their employees' well-being.
