Greensboro Businessman Guilty of State Tax Charges

Date: 12/2/2003

RALEIGH – A Greensboro businessman pleaded guilty Monday in Wake County District Court to charges filed by the North Carolina Department of Revenue.

Johnny Rex Cox, 59, of 1032 Christman Place, Greensboro, pleaded guilty to aiding and abetting Gate City Staffing, Inc. to embezzle $215,320.04 in North Carolina income taxes withheld from employees' wages. Cox was the chief financial officer for Gate City Staffing Inc. of Greensboro and was responsible for preparing and remitting the withholding tax reports and taxes due to the Department of Revenue.

In a negotiated plea, Wake County Superior Court Judge Henry Hight sentenced Cox to a 16-month minimum, 20-month maximum prison term. The sentence was suspended and Cox was placed on supervised probation for 60 months. Cox was ordered to serve a weekend in the Guilford County jail as a special condition of probation. In addition he was ordered to pay a $5,000 criminal fine and perform 50 hours of community service. Cox was required to immediately pay $50,000 in restitution to the Department of Revenue and must pay an additional $165,320.04 during his probation.

The charges against Cox resulted from an investigation by employees of the Department of Revenue's Examinations and Collections Divisions and a special agent with the Department's Criminal Investigations Division.

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