Lake developer sentenced on tax charges

Michael G. Schlup, of Leawood, Kan., was sentenced by Circuit Judge Stanley Moore and ordered to pay a $140,000 fine and $24,873 to cover prosecution costs. The court suspended a five-year term in the Department of Corrections, and he was placed on probation.

Missouri Attorney General Jay Nixon, who along with Camden County Prosecuting Attorney Jim Icenogle, brought the case against Schlup, also required him to pay more than $815,000 in state and federal taxes, interest and penalties since his guilty pleas, and he is barred from conducting business in the state, according to a Nixon news release.

Schlup’s businesses, Schlup Investments Inc. and Plaza Gardens on the Lake Inc., were involved in the construction of the Plaza Gardens on the Lake condominium complex near Sunrise Beach. He was charged in April 2006 with 12 felony counts of failure to deduct Missouri employer withholding tax, one felony count of failure to file a Missouri employer withholding tax return, and one felony count of failure to pay Missouri employer withholding tax. He pled guilty to all counts in June.

Nixon’s office began its investigation into Schlup after receiving reports of a worker's death and several serious injuries to workers at the Plaza Gardens construction site. The charges alleged Schlup paid his workers in cash and deducted no withholdings from their wages, according to the release. Employees allegedly worked 70 hours per week, and the undocumented workers were paid about $8 an hour.[[In-content Ad]]