Sacramento County has been defrauded of $17 million by a Long Island company that handles payroll for the County and its special district employees.

While the county paid all of the taxes it should have (to the company) they shorted the IRS by more than $17 million.

Herein lies my question:

Has Sacramento lost $17 million, or once they pay the still-outstanding $17 million in back taxes, will it be left the victim of a $34 million scam?

From the Sacramento Bee:

The U.S. Attorney’s Office has charged two officials at a Long Island payroll company with allegedly stealing nearly $20 million in client funds — including $17 million in payroll tax money from Sacramento County.




Albert Cipoletti, the chief executive officer of Ingentra HR Services, and Kerry Seaman, the company’s comptroller are charged with wire fraud for their role in the alleged scheme.

Read the full article here