CLEVELAND -- The director of a Cleveland non-profit organization withheld taxes from employees but did not pay them over to the government, said U.S. Attorney Steven Dettelbach.
Edward G. Kramer, 62, of Cleveland, also sought to evade his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years, according to a 10-count criminal information filed in U.S. District Court.
Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization that received federal funding from the U.S. Department of Housing and Urban Development.
Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.
Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.
Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.
Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc.
The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.
"We all have an obligation to truthfully report our income and pay taxes," Dettelbach said. "It is especially incumbent on those who work in our legal system to follow the law."