Ohio woman jailed for 18 months after diverting $494K in employee taxes to fund luxury spending

An Ohio woman who used hundreds of thousands of dollars in employee tax payments to fund a luxury lifestyle has been sentenced to 18 months in federal prison. Tammy Butdorf, 51, was sentenced in federal court in Akron after being found guilty of failing to pay employment taxes withheld from workers at her husband's electrical contracting business. This was confirmed in an official statement released by the U.S.

Attorney's Office for the Northern District of Ohio. Butdorf worked as the accountant and office manager for the family business. Her duties included collecting federal income tax, Social Security, and Medicare payments from employees' wages and sending the money to the government.

However, an investigation by the Cleveland office of the Internal Revenue Service Criminal Investigation (IRS-CI) found that she had been moving the money into private accounts over a period of six years.