Rapid City Business Owner Sentenced for Withholding Payroll Taxes, Emphasizing the Importance of Responsible Tax Payment

Ex-business owner convicted of tax fraud and sentenced to prison

A Rapid City business owner, Asher Wagh, was sentenced to federal prison for failing to pay over a quarter million dollars in payroll taxes. The owner of an ammunition component manufacturing company, Wagh withheld money from employees’ paychecks between 2015 and 2017 and did not pay the IRS.

In February 2021, a federal grand jury indicted Wagh on ten counts of failure to withhold, properly account for, and pay over tax. The company dissolved in July 2022, and Wagh pleaded guilty to one of the ten counts in October 2023. In exchange for his guilty plea, the government agreed to drop the remaining nine charges.

At sentencing, Wagh faced a maximum of five years in prison, a $250,000 fine and up to three years of supervised release. He is currently held at the Pennington County Jail awaiting transportation to a federal prison. According to South Dakota crime statistics from the Office of Attorney General, this case highlights the importance of paying taxes responsibly and following proper accounting procedures.

Leave a Reply