PARADISE VALLEY, AZ — A Paradise Valley man has been sentenced to 21 months in prison for tax evasion related to a scheme in which he pocketed a significant portion of federal employment taxes collected from clients, court documents show.
John Chandler Propstra, 47, was also sentenced to three years of supervised release after finishing his prison term, and was ordered by U.S. District Judge Steven Logan to pay more than $700,000 in restitution to the Internal Revenue Service, federal authorities said in a statement.
Propstra, who according to federal authorities had previously pleaded guilty to tax evasion, had operated several professional employment organizations through which he had contracted with small business owners to provide payroll services.
Instead of paying federal employment taxes to the IRS, he pocketed much of the money, according to court documents, and filed false employment tax returns with the agency, and also failed to file accurate wage reports with the Social Security Administration.
