In a plea bargain, reversing their original pleas, Marsha Whitfield pleaded guilty to one count of conspiracy and one count of wire fraud.
Her father, D. Edwin Todd, pleaded guilty to one count of conspiracy.
Last year, a federal grand jury indicted Todd, Whitfield and L. Brian Whitfield, her former husband, for what prosecutors say was a long-running scheme to defraud Sommet clients.
Brian Whitfield, the ringleader, has maintained his innocence. His trial is set for January. Marsha Whitfield’s attorney said she has agreed to testify against Brian Whitfield at the trial.
Prosecutors alleged the now-defunct third-party human resources firm, which was based in Franklin, used clients’ funds for personal use, including for a houseboat, pool and home improvements. The Internal Revenue Service has since seized those and other items.
The firm also paid $250,000 to the Nashville Predators to secure naming rights to what is now known as Bridgestone Arena.
Moreover, prosecutors say the company underreported how much in wages it was handling, resulting in it paying only $1.2 million of its $20 million tax liability during a three-year period.
U.S. District Judge Todd Campbell set a Feb. 3 sentencing date for the two defendants.
Marsha Whitfield, 39, and Todd, 68, each face up to five years in prison and a $250,000 fine on the conspiracy charge. Whitfield faces up to an additional 20 years in prison and a fine of $250,000 on the wire-fraud charge.
Brian Whitfield and Todd were Sommet Group’s founders and managing partners, while Marsha Whitfield was its vice president of payroll.
Sommet handled payroll, benefits and other back-office functions for small businesses and organizations.
Source: The Tennessean