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Crime and Courts


The owner of Cleveland job-training company faces tax charges
Clark hayes is accused of withholding hundreds of thousands of dollars from paychecks that he never passed onto the IRS
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
In The Region:

The owner of a company that got millions of dollars in federal money to run the Cleveland Jobs Corps Center has been indicted. 

Fifty-three-year-old Clark Hayes faces charges he withheld nearly $900,000 in federal taxes from employees’ paychecks over a period of about 13 months, but never turned the money over to the IRS. 

Hayes ran Applied Technology Systems, Inc. or ATSI. The U.S. Department of Labor contracted with the company to train hundreds of workers with new skills beginning in 2005. 

In all, the company collected about $55 million from the contracts -- $15 million of that from July 2010 through August 2011. According to the indictment, that’s when ATSI withheld and pocketed the taxes.

A Plain Dealer investigation in 2011 listed a series of other problems Hayes and his company had including overcharging the government nearly $2 million for overhead expenses. He also fell behind on property taxes on his nearly $1 million home in Richfield.

Back then, Hayes blamed the government for slow reimbursements.

 

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