University Official Resigns After Indictment for Tax Violations

Columbia, S.C.: University Official Indicted for Tax Violations

In a surprising turn of events at the University of South Carolina, an associate vice president has found herself under serious scrutiny after being indicted in federal court. Mari Ross-Alexander, who just began her role as the Associate Vice President for Student Health and Well-Being in July 2023, has resigned amidst allegations involving her past conduct with a mental health counseling business she owned in Tennessee.

What Happened?

Ross-Alexander was indicted on 11 counts of “willful failure to account for and pay over employment tax,” a serious charge that could come with hefty penalties. Each count could lead to a maximum of five years in prison and a fine of up to $250,000 or double the amount she allegedly failed to pay. Such significant charges are raising many eyebrows within the university community and beyond.

The Daily Gamecock, the university’s student newspaper, first brought this alarming news to light. It’s important to note that Ross-Alexander has been a name in higher education for more than a decade, previously serving in leadership at the University of North Carolina at Charlotte.

The Allegations

The crux of the issue lies in her management of the Ross Behavioral Group, a counseling center she ran from 2011 until this year. According to court documents, Ross-Alexander is accused of withholding employment taxes from her employees’ paychecks but failing to pass these taxes along to the Ins Internal Revenue Service (IRS). From 2015 to 2021, she allegedly misled her employees by issuing tax statements that falsely indicated their taxes were being paid to the IRS.

Investigators claim that Ross-Alexander failed to pay over over $1 million in employment taxes during this period. The situation escalated in 2018 when the IRS reached out to her regarding the unpaid taxes, but despite their attempts to resolve the issue, she did not rectify the situation.

Compounding Issues

In May 2020, things took an even more complicated twist. As a part of the relief efforts during the COVID-19 pandemic, Ross-Alexander’s company received a Paycheck Protection Program (PPP) loan exceeding $130,000 to help cover payroll and tax expenses. Unfortunately, it seems she continued to withhold taxes from her employees without fulfilling her obligations to pay the IRS. This pattern of behavior raises serious ethical questions.

Moving Forward

Ross-Alexander has officially resigned from the University of South Carolina, with her last day set for October 23. The university has confirmed her departure as they begin to navigate the implications of this situation.

As this story unfolds, it serves as a reminder to all about the importance of responsibility in financial matters, particularly when managing payroll and taxes. Employees trust their employers to handle these essential parts of their compensation accurately and legally.

The allegations against Ross-Alexander are concerning to many within the academic community, who work hard to support their students and uphold the integrity of educational institutions.

Conclusion

We will continue to follow this story as it develops, particularly as legal proceedings unfold. For now, it’s a stark reminder of the complex relationships between responsibility and leadership in academia.

As we navigate these challenging times, the hope remains that those in positions of power prioritize accountability, integrity, and transparency for the wellbeing of everyone they serve.