Business Owner Accused Of Embezzling From Employee Health Plan

NORTH ROYALTON, OH — A North Royalton business owner is accused of embezzling from his employees' health plan and failing to pay over taxes, the Department of Justice announced.

John George Medas, 67, was indicted on 25 counts last week. He was the owner of multiple manufacturing companies and was president of Guarantee Product Specialties, Fulton Manufacturing Industries and FMI Products.

Medas is accused of withholding payroll tax from employees, but not paying those taxes to the IRS, according to the Department of Justice's indictment. Medas failed to pay over $760,725 between April 2014 and Jan. 31, 2019, prosecutors said.

Medas is also accused of withholding $3,807 in pre-tax health contributions and embezzling the funds between July 2016 and Sept. 2016, the indictment said.

The IRS and the U.S. Department of Labor led the investigation into Medas.