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Connection Newspapers CEO Sentenced to Six Months in Jail, Must Pay $650K

Peter Labovitz pleaded guilty in July to two counts of failing to pay taxes to the IRS.

The president of Old Town Alexandria-based , which publishes community newspapers throughout Northern Virginia and Maryland, was sentenced Tuesday to six months in jail and a fine on

After the six months in jail, Peter Labovitz will be placed on supervised release for a year. Six months of that year will include home confinement.

The sentence also mandates that $647,510 must be paid within 60 days of sentencing along with a $50 court fee, according to the Alexandria branch of the U.S Attorney’s Office.

For the third and fourth quarters of 2007, Labovitz caused payroll taxes to be deducted and collected from employees’ wages but admitted at his plea hearing that he failed to pay those taxes to the IRS.

The tax loss resulting from his conduct during those quarters as well as some other quarters from 2002 through 2008 is approximately $944,000, according to the government.

The case is U.S. v. Peter Churchill Labovitz.

El September 28, 2011 at 06:22 PM
I think he put taxpayers dollars to the wrong use when he stole payroll taxes.
Wien October 05, 2011 at 03:58 PM
Taxes are a cost of doing business. If you cannot afford to pay your payroll taxes, then the business is not healthy and is not sustainable, meaning either the business model is broken or the business is failing. Both will result in "having to close the doors and add more people to the scoes of unemployed". It's hard to accept that it was just "hard times" since the actions were accumulated from 2002 through 2008, that's not just a blip on the radar screen due to unfortunate events; rather seems to be systematic...not necessarily fraud or stealing, no. A lot of businesses were crippled after 9/11, but for him to use that as the start of the shortfall in funds is ignoring the trend of all paper media. It's not indicative of a short-term downfall in ability to pay, but indicative of a business model failing, and that should have been addressed well before this time. The Justice Department can't let everybody off the hook because they fall on hard times, otherwise a lot of folks wouldn't be paying income tax either.
El October 05, 2011 at 04:03 PM
Well said, Wien.
El October 05, 2011 at 05:06 PM
Works for me, Ruth.
El October 05, 2011 at 06:44 PM
well, Ruth! Now you are channeling Suze Orman!

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