Todd Fisher, CEO of iParq.com, enticed a contractor to become an employee in exchange for a four year vested ownership position in the company that would generate residual income. Todd filed K-1 tax forms with the IRS to give the employee con-fidence that the deal was real. When fully vested (and the software development completed), Todd simply instructed his tax preparer to stop filing K-1 forms, essentially swindling the employee.
Is this a criminal offense? Would it be a Federal crime since Todd used the IRS as a tool to defraud the employee?
