Judge Hands Down 12-Month Federal Prison Sentence To California-Based Home Care Owner

A Bishop, California-based owner of a home care company was sentenced to 12 months and one day in federal prison.

Shane Brightpath Mike — the owner of a Campbell, California-based Excel Behavioral Services Inc. — received this sentence for not paying the employment taxes that were withheld from his employees wages.

In addition to being the owner of the company, Mike was also president and chief operating officer of Excel Behavioral Services. In these roles, Mike was in charge of withholding social security, Medicare and income taxes from worker wages. He was also responsible for paying over these funds to the IRS.

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Throughout Q4 of 2014, and Q3 of 2015, Mike allegedly failed to pay the withheld taxes to the IRS, according to the DOJ.

Additionally, Mike only paid some of the withheld funds in Q3 2014.

Overall, Mike allegedly failed to pay more than $1 million in taxes to the IRS during these combined years. Instead, some of the company’s funds went towards his personal expenses during this time period.

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U.S. District Judge Beth Labson Freeman included three years of supervised release as a part of Mike’s sentencing. He also has to pay $1,177,947 in restitution to the U.S. and a $100 special assessment.

His sentence is slated to begin on March 18, 2025. His case was investigated by IRS-CI, the criminal investigative arm of the IRS.

Recently, another California-based owner and operator received a two years federal prison sentence after pleading guilty to one count of health care fraud.

Veronica Katz, the owner and operator of San Francisco-based HealthNow Home Healthcare and Hospice (HealthNow), must also pay $543,634.34 in restitution. She also received a three-year period of supervised release and has to pay a $50,000 fine.

Katz will start serving her sentence on Jan. 6, 2025.

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