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Palm Beach Gardens, FL - A Palm Beach Gardens man has been sentenced to federal prison after allegedly orchestrating a massive payroll tax fraud scheme that funded a lavish lifestyle, including the purchase of 27 Ferraris, a yacht, and a private jet.
According to the U.S. Department of Justice, 51-year-old Matthew Brown operated a payroll services firm, Elite Payroll, which handled tax withholdings for small businesses across Palm Beach, Martin, and St. Lucie counties.
From 2014 to 2022, Brown allegedly collected over $22 million in employee payroll taxes from clients but failed to send the money to the IRS.
Federal prosecutors say Brown filed fraudulent employment tax returns that dramatically understated his clients’ actual liabilities.
In one example, his company collected roughly $219,000 from a client but falsely reported only $32,000 in owed taxes, keeping the $187,000 difference for himself.
Authorities allege Brown used the stolen funds to buy high-end real estate, a Valhalla 55 Sport Yacht, a Falcon 50 jet, and a fleet of luxury vehicles that included Rolls-Royces, Porsches, and dozens of Ferraris.
Last week, a federal judge sentenced Brown to 50 months in prison.
He was also ordered to serve two years of supervised release and to repay over $22.4 million in restitution, along with a $200,000 fine.
The case was prosecuted by the Justice Department’s Tax Division and investigated by IRS Criminal Investigation.