Developer pleads guilty to not withholding employee taxes

Michael G. Schlup, of Schlup Investments Inc. and Plaza Gardens on the Lake Inc., was involved in the construction of the Plaza Gardens on the Lake condominiums complex near Sunrise Beach.

Nixon’s office began its investigation after learning of reports of a worker death and several serious worker injuries at the Plaza Gardens construction site. In April 2006, Nixon and Camden County Prosecuting Attorney Jim Icenogle brought the charges against Schlup.

Schlup pled guilty to 14 criminal charges that he failed to withhold taxes from his construction workers or remit those payroll taxes and file a return with the state.

Nixon said his office has reason to believe that as many as 30 undocumented workers may have worked at the site at any one time, according to a Nixon news release.

The charges allege Schlup paid his workers in cash and did not deduct withholdings from their wages. Employees allegedly worked 70 hours a week, and the undocumented workers were paid approximately $8 an hour, according to the release.

Schlup is scheduled to be sentenced Oct. 17.

Under the terms of the plea, the state is recommending that Schlup receive concurrent sentences of five years in prison on each of the 14 counts, pay the maximum fine on each count totaling $140,000, and pay $24,873 in costs.

Schlup also would be barred from conducting business in Missouri after completing his current projects.

Schlup is required to pay all state and federal taxes and penalties prior to sentencing, according to the release. If those are paid, the state will recommend that his prison term be suspended.[[In-content Ad]]