The former president of a Woodbine generator manufacturing company pleaded guilty last week to failing to file income tax withholding returns for his employees totaling $89,500.
Michael J. Mulcahey, 47, former president and owner of the now-defunct Genco Industries Inc., used the money for personal mortgage payments, car payments and speculative investments, according to a statement of facts read in CircuitCourt by assistant attorney general Karen J. Kruger.
Mulcahey of Southbury, Conn., paid $10,000 toward restitution to the state of Maryland. The maximum penalty for failing to file incometax withholding returns is a five-year jail term and a $5,000 fine.
Mulcahey will be sentenced on Nov. 26.
From Jan. 1, 1988, through Jan. 31, 1990, Mulcahey failed to file income tax withholding returns and pay the income withheld to state and federal governments, Kruger said.
Mulcahey was also charged with two counts of fraudulently misappropriating $22,958 in withheld state taxes and $66,678 in withheld federal taxes while a fiduciary for the state of Maryland.
As part of the plea agreement, those charges were set aside, Kruger said.
The state learned of Mulcahey's activities after a Genco employee notified the comptroller's office.
According to the statement,Mulcahey had also not filed corporate tax returns for Genco or personal state income tax returns since 1977.