SALT LAKE CITY (AP) -- The Justice Department has shut down a Utah payroll service company which allegedly diverted customer funds and failed to make tax payments on its customers' behalf.
According to papers filed by the department Thursday, customers of Provident Management Group Inc. turned their payroll funds over to the company in return for its agreement to prepare their payroll checks, make required employment tax deposits and pay other benefits for them.
Despite these agreements, Provident allegedly failed to file at least 282 employment tax returns for its customers in Utah and Arizona, and failed to make more than $2 million in required employment tax deposits on their behalf.
The government further alleges the company's officers diverted funds for their personal use. According to the Justice Department, a majority of Provident customers contacted by the IRS did not know that their taxes had not been paid.
A federal court in Salt Lake City issued a temporary restraining order, which was unsealed Thursday, against the company and its officers -- Scott M. Boley, of Heber City; Douglas C. Morby, of American Fork and Robert A. Langford of Mesa, Ariz.
The company was formerly known as Paysource, LLC and also operates under the name Provident Business Partners, Inc.
(Copyright 2003 by The Associated Press. All Rights Reserved.)