NAC: Firm not affected by actions of ex execs
DUNCANSVILLE – The president of North American Communications said Tuesday the business won’t be affected by two former company executives pleading guilty to filing false tax returns.
Michael Herman of Hollidaysburg, the founder and one-time president of the company, failed to report $9,873,745 in taxable income for 2007 and 2008, resulting in a loss of $655,934 in income tax to the Internal Revenue Service, according to the U.S. Justice Department.
Also pleading guilty to falsifying his tax returns in 2007 and 2008, leaving out $4,787,222 in taxable income, was former company executive Robert Paltrow of Palm Beach, Fla. Paltrow’s filing shorted the IRS $798,969.
“Yesterday, Mike Herman and Bob Paltrow pleaded guilty to underreporting their income to the Internal Revenue Service for 2007 and 2008. They owe back taxes as a result. While we acknowledge their history of service to the company, we want to make clear that this case is strictly limited to the personal income tax returns of these two individuals, neither of whom have been involved in the management of the company for years. North American Communications cooperated fully with the government in its investigation, and these charges do not involve the company in any way; nor will they have any impact on the company’s operations now or in the future,” President Rob Herman – Michael’s son – said in a statement.
U.S. District Judge Kim R. Gibson will sentence Michael Herman and Paltrow at 10 a.m. Sept. 30.
North American Communications, an international direct marketing firm, announced earlier this month the company would add 100 new jobs through 2014 after already adding nearly 60 jobs since September.