The complaint has been investigated and
resolved to the customer's satisfaction
Resolved
First Priority PayPayroll Fraud: FPP took our money but did NOT deposit taxes or file tax returns

S Review updated:

We had hired a payroll firm “First Priority Pay” (FPP) http://www.firstprioritypay.com/ located in Hoboken, NJ for processing our employees' monthly payroll. They started working for us in 2008. Last year (2009), we started receiving notices from the IRS about unpaid dues and FPP said they would pay the dues promptly. And they did pay some of them. However, we received another set of notices from the IRS this year (2010) about more unpaid dues. We then contacted FPP about it and received an email from the President, Mr. Jerry Carter that someone had embezzled money and they were working to get the money back.

Meanwhile, we found out that over $17, 000 had NOT been paid to the IRS (the amount is actually close to $19, 000+ including penalties and interest) even though the money had been already taken out of our account. The IRS and the State also informed us that the third quarter returns had not even been filed and asked us to file them ASAP. Only then, the IRS will let us know the exact amount of penalties and interest they would charge for the third quarter.

After some initial contact, FPP did not respond to our repeated requests for refunding our money and filing the forms. They have committed fraud with not only our company but with many other companies nationwide. When we called the Hoboken Police Station, they said that they were familiar with FPP since they had numerous complaints from many companies nationwide.

This company took all our money PLUS charged their own service fees every single month but they neither deposited the taxes with the IRS nor performed their services as required. Now they say that they do not have the necessary man power to even answer their clients who rightfully need the money to pay their taxes.

We have spent numerous days researching the situation, filing paperwork, contacting the authorities, etc. This company needs to be investigated for fraud. We request you to investigate this matter and help us bring this to light. Thank you for helping us.

Responses

  • Di
    DIZeLAN Chris Oct 17, 2016

    Was there a class action lawsuit filed that us business owners / victims can access?
    I'm getting IRS notices for unpaid business taxes from 2007 to 2010 and it's late 2016 because FPP embezzled money they should have paid to IRS for our payroll taxes. IRS is asking for $6637.08.
    Chris, DIZeLAN Frag Center, now closed since 2014
    [email protected]

    0 Votes
  • Fr
    Fresh Start Mar 15, 2011
    This comment was posted by
    a verified customer
    Verified customer

    I am a victim of 10k. We are a small company out of Boston MA

    0 Votes
  • Fr
    Fresh Start Mar 15, 2011
    This comment was posted by
    a verified customer
    Verified customer

    We have had over 10k which we owe to the IRS for the 3rd quarter 2009. Our email is [email protected] and we are a small contracting company in Boston MA

    0 Votes
  • Gr
    Greencoastcap Dec 01, 2010
    This comment was posted by
    a verified customer
    Verified customer

    We were also a victim, CA based company, does anyone have an update on Priority Payroll? We're also interested in a class action email at [email protected]

    0 Votes
  • Jc
    jc2jail Dec 01, 2010

    Reading these posts sickens me...I was an employee for this sham, who was let go. Probably because I asked too many questions about why the double dipping of money--one time, perhaps, by the tax paying service. But two, three, and more times?!? Come on!!

    Clients had to prove that the money was pulled twice??? FPP records should have been able to show that within hours. But, they couldn't do that. hmmmm Then, once the client jumped through the hoops of providing the records it would still take days to refund the money, when it was taken lickety split??

    The lies and information that were given to the employees were almost as bad as what was told to the clients. We only lost our jobs, some of you have lost thousands of dollars and some even your businesses. Looking back, I can almost figure out which "key" employees had a clue to what was going on in some way.

    I pray that the IRS will help you all the best that they can and at least alleviate the penalties and interest payments. So, sorry.

    0 Votes
  • Sr
    srinibora Nov 19, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Recprosity - There is no way we can skip the principal owe, but it seems like it is almost impossible to get the penalties removed for this action that Jerry Carter has done. I Just don't get one thing if IRS Says that it is taxpayer responsibility to pay the taxes then why does IRS or FED allows to open a company that does payroll and enter in this odd situation. By the way I am hit 56K, I just paid the original amount and now trying to get the penalties removed and I am having tough time in getting removed.

    0 Votes
  • Re
    Recprosity Nov 19, 2010

    I'm planning on fighting the IRS on this one for as long as I can. This is just crazy to have to pay twice. We were taken for $50k - and we're not profitable yet! It would have been better for us to just declare bankruptcy; however, if the company has any unpaid employee taxes (and the IRS considers this as "unpaid") - then the IRS can legally come after any director of the company. This means the IRS can come after ME and I am personally liable for the $50k that Jerry stole from our company. A bit screwed up, right? I have been trying to get them to transfer liability to Jerry Carter, drop the taxes, or even wait until the final settlement (which will be almost zilch) - nothing successful so far. However, this is AMERICA and we VOTE for the people that set up the IRS and make the rules. We are the citizens that decide how this country is run. We decide to vote for the people who will PUT THIEVES LIKE JERRY in their proper place (which I personally believe is some type of psychiatric rehab - not just jail). The point is that WE ARE RESPONSIBLE for having a government that accepts crooks like Jerry and makes good citizens like us pay twice. Let's VOTE for a government whose tax collectors act compassionately (or at least can do something when they clearly see what's going on!!) and whose law enforcement requires restitution from the thief.

    0 Votes
  • Sr
    srinibora Oct 29, 2010
    This comment was posted by
    a verified customer
    Verified customer

    oops sorry for the text. I worte a big text and lost it
    So here is the story again
    We filed the missing form on Sep-10 and Yesterday I got the notice from IRS for the amount due which included the penalties also.
    Also i got a call from IRS interestingly and she was asking what has happened, the situation seems very confusing
    I explained her the situation, then she replied and said that she understand the situation and she will work on it and keep me posted
    fingers crossed.
    Waiting for her call to know what is next.

    0 Votes
  • Gm
    gmayocum Oct 29, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Can anyone tell me if they've been able to get the IRS to abate/drop the penalties for late filings (since we didn't even they weren't filed)?

    0 Votes
  • Da
    Daniel Simon Oct 18, 2010

    I would like to join in a class action suit as well. This company just about sank me business.

    I can be reached at

    Cell [protected]

    Daniel Simon

    Owner of Cottman Transmission in Cary NC

    0 Votes
  • Br
    brussell50 Oct 13, 2010

    Unfortunately, I work for class action attorneys (I have side business that was victimized also) - and they are not interested in filing a case because they won't get any money out of it. Obviously Carter lied about being licensed and bonded, and he has filed for bankruptcy - so there is not money - no money - no case - as far as class actions go. Isn't the State of New Jersey going after him for massive fraud???? I cannot believe that he can get away with this - though I have seen nothing recent about any investigation, etc. - just that he was released from custody on that kidnap charge and all charges were dropped - anyone know anything????

    0 Votes
  • Sr
    srinibora Sep 08, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Hi
    We are 2 employees and we got hit really hard, Seems like the company did not pay since april of 2008 for the entire year. Our bill is coming approx of 56000. I feel so demotivated and upset that these thieves are put there in the street open and free just by filing bankruptcy and enjoying their life with someone else hard earned. I am very depressed. I can be reached at [protected].
    Also this will have lots of impacts

    0 Votes
  • Ht
    htnwirelessllc Aug 23, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I am also one of the victim of Priority Pay, Mr. carter constantly said that, he paid the taxes amount but he didn't. IRS came to me and said that you Owe 6000 dollars for first quater of 2010. I called Priority pay and no one was picking up the phone. Can you help me Please if you found any solution.

    [email protected]

    0 Votes
  • Sq
    SQLGeek Aug 02, 2010

    One other thing for everyone, particularly those who have received levy notices. PICK UP THE PHONE and call the IRS agent that will be listed on the levy notice or any other notice that you receive. Let them know what is going on - just the straight facts. Regardless of what FPP did, the employer is the one legally responsible to pay the taxes to the IRS. If you do nothing, try to avoid the IRS, or do anything to make the IRS question anything, they can and will file the levy and the money will be taken straight out of your bank account without any warning whatsoever.

    We started out by contacting our IRS rep when we get the first levy notice related to Q2 2009. We've been working with her for a couple of months to get paperwork pulled together, make sure all of the 941s are filed, and reconcile all of our paperwork with all of the IRS' paperwork. At least at this point, we're able to fully quantify the liability amount and correlate that to each pay period where FPP withdrew funds from our account and never sent them to the IRS. (Paperwork you're going to need anyway to document the fraud.) As long as you are talking to the IRS and working toward a resolution, the IRS will keep talking to you. When you stop talking to the IRS and don't return any phone calls or letters, that's when you get levy notices and ultimately levies. We were pleasantly surprised with our IRS agent, you might be as well. At a minimum, you'll have a well documented case for at least getting penalties and interest removed and credited back to your account.

    0 Votes
  • Ko
    KOStaffing Aug 01, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I would also like to file criminal charges against Jerry Carter and all executives of First Priority Payroll. They STOLE FEDERAL FUNDS from all of our accounts. Does anyone have any information on how this can be done, possibly collectively?

    0 Votes
  • Sq
    SQLGeek Aug 01, 2010

    Whomever is aggregating everyone together in this, count us in. I can b e reached at [email protected] Our loss was SIGNIFICANT.

    We are working with a representative from the IRS to deal with our account. While some may find this quite shocking, the IRS agent we are working with has been extremely helpful, very understanding, and an absolute pleasure to work with. In working with the IRS agent that is dealing with your account, you can receive an account statement from the IRS. This will detail every payment that they have received and the date it was posted. That will let you reconcile your paperwork from the debits that came from your bank account to the payments posted by the IRS. This is the paperwork trail that is needed to quantify the embezzlement.

    I also just received the bankruptcy hearing notice that is set for August 9, 2010. We're planning on sending a package of documents to the judge protesting any action that lets this company's officers off the hook. That package will contain the details of continued embezzlement from Oct 2009 all the way through March 2010. I'd suggest that everyone else do the same.

    0 Votes
  • Ko
    KOStaffing Jul 26, 2010
    This comment was posted by
    a verified customer
    Verified customer

    TO ALL:

    The person assigned to this case is Johnathan Miller. He is with the IRS Criminal Investigation Unit. He can be reached at [protected].

    -1 Votes
  • Gm
    gmayocum Jul 26, 2010
    This comment was posted by
    a verified customer
    Verified customer

    We too are victim, my company $16, 000 and my husband's about $12, 000. Plus I have another friend who's a victim but I don't know her amount. Count us in. [email protected]

    0 Votes
  • Ko
    KOStaffing Jul 13, 2010
    This comment was posted by
    a verified customer
    Verified customer

    My company is a victim of FPP as well:

    Robert Criscuolo
    KO Staffing Services, LLC
    1163 Inman Ave. Suite 202
    Edison NJ 08820
    Ph: [protected]
    Fax: [protected]

    0 Votes
  • Ch
    Chris New York Jul 09, 2010

    We are a small based upper New York State Comapny of 2 employees who have been hit for over 20K. My e-mail is [email protected] Please add me to the list.

    0 Votes
  • Ap
    AparnaIyer Jun 02, 2010

    I am a victim of over $12K, California based company. Does anyone know how the bankruptcy meeting went on May14th.
    Just found out about this forums. Is anyone initiating a Class action lawsuit against Jerry Carter and First priority payroll?
    If so, please add me. [email protected]

    0 Votes
  • Fo
    fountain May 31, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I am a victim of 150K.Does anyone have knowledge of the FBI actively participating in this case?

    0 Votes
  • Sc
    screwedbyfpp May 27, 2010

    We are victim of over $100k, Central NJ company. [email protected]

    0 Votes
  • He
    HeavyWood Records May 26, 2010

    Please add HeavyWood Records to the interest in a class action suit [email protected]

    0 Votes
  • Af
    AFunke May 26, 2010

    I'm a victim to. Greenville, SC. Thankfully only about $1300 so far.
    [email protected]

    0 Votes
  • Nt
    ntrusty May 14, 2010

    I signed up with FPP late in 2008, and was switched to ADP early this year. I received a visit from the IRS this week and they informed me that my company owes over $6, 500 in taxes and penalties. Apparently FPP didn't file any of the taxes they collected. I am the only employee in my company, and this is going to hurt!!! I hope something can be done for all of us victims.

    [email protected]

    0 Votes
  • Jj
    jjengine May 13, 2010
    This comment was posted by
    a verified customer
    Verified customer

    May 13th, 2010

    I was a victim also. I switch payroll companies priot to there sale to ADP. I Just found out yesterday but a certified letter from the IRS, that they were going to levy my accounts. Not understanding what happened I made some phone calls and found out I'm not the only one. My E-mail is [email protected] Add me to that list.

    0 Votes
  • Fo
    fountain May 13, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I was also hit hard by Jerry Carter.The loss was significant call me at [protected] we need to obtain a client list of victims and pursue this thief.

    0 Votes
  • Da
    DavesWorks Apr 26, 2010
    This comment was posted by
    a verified customer
    Verified customer

    We have been ripped off to the tune of over 15, 000.00 !!! We were "transitioned" to ADP. When I questions ADP about this, they say that they are not liable, but I must agree with abusedplumber and wonder how much of this ADP knew and covered it up!?!?

    I have contacted a bankruptcy lawyer, and will let you all know what I have found. Perhaps if we have a large enough group, enough media attention etc, we can get what we are owed.

    Email me with any help or questions: [email protected]

    0 Votes
  • Ab
    abusedplumber Apr 26, 2010

    Unfortunately, a victim also. Have a contracting business in NYC. WE MUST STICK TOGETHER. How much did ADP know prior to FPP filing bankruptcy? Were they culpable in anything as well...not in the fraud part, but in the covering up of information? We must check on this as well. PLEASE NOTIFY THIS POSTER OF ANY UPDATES.

    [email protected]

    0 Votes
  • Ad
    adp/prioritypay victim Apr 19, 2010

    Our firm is a victim
    too: [email protected]

    0 Votes
  • Ja
    jayzenz Apr 16, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Interested in class action suit.
    Superior Waterproofing, Inc.
    PO Box 356, Bristol, IL [protected]
    [email protected]

    0 Votes
  • Be
    benji Apr 16, 2010

    If you have been victimized by FPP and Jerry Carter, there are several things you MUST do (or else Jerry and his brother will keep doing this to other people):

    1. Contact the Attorney General of New Jersey who will send you to the Prosecuters office in New Jersey who is handling the case. Here is the number: Hudson County Prosecutor Office - [protected].

    Call and KEEP CALLING. You may have to call a dozen times, but they need the details of your case (particularly if you were still being embezzled after January 1 after ADP took over and Figuero was in jail).

    2. Contact Brian Turk of the Secret Service at [protected] his e-mail is [email protected] and let him know what has happened.

    3. File a complaint with the Federal Trade Commision at [protected] and file a complaint. We need to submit enough complaints to warrant an investigation.

    4. Contact your local news (television and newspaper). Let them know this is another Bernie Maddock situation of Ponzi-esque proportion. If we can garner enough media attention, it will force law endorcement to take this more seriously.

    5. If you want to participate in a lawsuit against Jerry Carter and FPP, post a message on this board with your contact information.

    0 Votes
  • Pa
    paygone Apr 06, 2010

    I was also victimized by FPP and Jerry Carter (stole aprox 12K of our payroll witholdings). I have contacted state, local, FBI and Secret Service. If you are a victim of FPP you must contact the Secret Service. Agent Brian Turk is working on the case and is requesting anyone whow has had stolen funds from First Priority Pay or Jerry Carter via payroll services contact him. Agent Turk's direct line is [protected] his e-mail is [email protected]

    0 Votes
  • Ba
    Barb Stier Sep 04, 2019
    This comment was posted by
    a verified customer
    Verified customer

    @paygone Can you tell me if the case went anywhere? [email protected] I was a victim

    0 Votes
  • An
    Another Victim Of FPP Apr 06, 2010

    http://www.nj.com/hobokennow/index.ssf/2009/12/jerry_carter_a_hoboken_busines.html

    Disgusting

    0 Votes
  • An
    Another Victim Of FPP Apr 06, 2010

    We got ripped off to the tune of almost $8000 that we know about for sure. I suspect another $12, 000 for the third quarter of 2009. I had to relentlessly hound FPP for copies of all of our 3rd quarter paperwork and finally got some of it. I had no idea FPP hadn’t even filed it until I was informed last week by an IRS employee. According to the IRS, they received around $12, 000 less in taxes than FPP collected out of our payroll account. I noticed issues last summer when I got notices from the IRS and Department of Labor & Industries about unpaid taxes and premiums. Nobody at FPP would return phone calls or answer emails, including "Mr. Carter." By mid-October, I had switched to another payroll company. Carter/FPP supposedly found all this out in November of 2009, but did they bother letting me know? Of course not! When I got the IRS notice of unpaid 4th quarter taxes on March 8th, 2010 and contacted Carter, he emailed me a "client letter" dated January 22nd that had never been sent to our office. Again, nobody at FPP will return calls or answer emails, nor will their attorney, Lawrence Cotler. I have repeatedly asked Jerry Carter and his lawyer for the name and contact information for their liability insurer and bonding company (NOTE: The FPP website claims to they are insured and bonded), but they will not answer. TODAY (04/06/2010), I got an email with a letter from Carter stating they were filing Chapter 7 BANKRUPTCY! I also contacted Mr. Figueroa’s new business right after finding this out. The woman who answered the phone, but wouldn’t identify herself, claimed there was more to this story than Mr. Carter was telling anyone. After today’s correspondence, I wonder. I think there is much more to this than former clients are being told. If FPP was bonded and insured, why won’t Jerry Carter provide that information to clients? This is a small, but fast growing, healthcare business that just underwent an expansion. Everything the owners have is tied up in that. This action could very well ruin this business and put 20 people out of work. I’d be happy to be involved in any kind of action against FPP, Jerry Carter, or even Jose Figueroa, if he really did do what they claim he did. You may email me at [email protected]

    0 Votes
  • Fp
    FPP Customer Mar 25, 2010

    Hello,

    Our company also got scammed by First Priority Pay Payroll. I want to gather as many customers as possible and hopefully all of us can file a class action lawsuit against FPP.

    Please email me your contact information to:

    [email protected]

    Let us all work together to get back what is rightfully ours.

    Hope to hear from you soon.

    Elaine

    0 Votes
  • Ba
    Barb Stier Sep 04, 2019
    This comment was posted by
    a verified customer
    Verified customer

    @FPP Customer Did you every get a case together. I did not know about this site. [email protected] is my email. Let me know please

    0 Votes
  • Vi
    VICTIM Mar 22, 2010
    This comment was posted by
    a verified customer
    Verified customer

    this is crazy... first it was First Priority Pay who committed massive fraud and now their employees. whole payroll processing industry is a massive SCAM.

    They already started a new company in Springfield called United Payroll Pros. IT IS CRAZY...United Payroll Pros IS A FRAUD TOO... BEWARE...

    http://www.nj.com/http://www.nj.com/hobokennow/index.ssf/2010/03/two_accused_of_embezzling_5880.html

    0 Votes
  • Ru
    Russell Partners Mar 15, 2010

    The same thing happened to us. I keep seeing complaints on this site and there seems to be a ton of us that this happened to. We are a small company in California. We ended up owing the IRS $4000.00 and we had to pay it or they were going to "Levy" our account. We are yet to make a profit yet, we are a new company (started our 1st job in Dec. 2008). If anyone has any ideas, we are on board. You can contact me at [email protected] or by phone [protected]. We need to stick together in this.

    0 Votes
  • Wi
    wilbur Mar 12, 2010

    same thing happened to us. contacted the attorney generals office in nj. thay have had numerous complaints. they took our payroll tax money but never sent to IRS. we are a small co. in NJ.

    0 Votes

Post your comment

    By clicking Submit you are agreeing to the Complaints Board’s Terms and Conditions

    IN THE NEWS

    Unhappy consumers gather online at Complaintsboard.com and have already logged thousands of complaints.
    If you see dozens of complaints about a certain company on ComplaintsBoard, walk away.
    One of the largest consumer sites online. Posting here your concerns means good exposure for your issues.
    A consumer site aimed at exposing unethical companies and business practices.
    ComplaintsBoard is a good source for product and company gripes from especially dissatisfied people.
    You'll definitely get some directions on how customer service can best solve your problem.
    Do a little research on the seller. Visit consumer complaint websites like ComplaintsBoard.