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MADISON - ST. CLAIR RECORD

Monday, November 18, 2024

Judge grants IRS default judgment against Guarantee Comfort and Energy for payroll taxes not withheld

Federal Court
Duganhorizontal

Dugan

EAST ST. LOUIS – James Fleming, former owner of Guarantee Comfort and Energy, owes the Internal Revenue Service $477,728.01 in payroll taxes he didn’t withhold plus 15 years of penalties. 

U.S. District Judge David Dugan entered default judgment against him on Oct. 20. 

Fleming prolonged the process by moving out of a home in Maryville and evading service for five months. 

Even after service, he chose not to defend the suit with counsel or by himself. 

When Dugan signed the order, the IRS still didn’t know where Fleming lived. 

Ali Gadelhak of the Justice Department’s tax division in Washington filed the complaint last October. 

Gadelhak alleged that Fleming willfully failed to truthfully account for employment taxes. 

In January, Gadelhak moved for an extension of time to serve Fleming. 

He wrote that a service package was sent to a Maryville address but was returned with a notation that recipient moved. He wrote that he contacted Fleming by telephone in December and requested an alternate address. 

Fleming allegedly refused to give an address and stated he would like to consult an attorney. 

Gadelhak wrote that they agreed to check in by the end of the year but on Dec. 28, he tried to contact Fleming without success. 

Dugan granted an extension, and Gadelhak asked for another in March. 

Gadelhak wrote that process servers tried two Illinois addresses and two in other states. 

He wrote that he left voice mails and sent a text message. 

He wrote that he spoke by telephone with Fleming’s adult daughter Sydnie Fleming, who said she didn’t have an address but provided an email address. 

After that, he wrote, she didn’t answer calls and her voicemail box was full. 

Dugan granted service by email or text, and the government served Fleming. 

In April, Dugan ruled that he would dismiss the suit for want of prosecution unless the government moved for entry of default. 

Gadelhak filed the motion and the clerk entered default. 

In June, Dugan ruled that he would dismiss for want of prosecution if the government didn’t move for default judgment by July 14. 

Gadelhak moved for an extension on July 13, and Dugan granted it. 

Gadelhak moved for another extension in August, and Dugan granted it. 

Gadelhak filed for default on Sept. 27, and Dugan’s judgment followed. 

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