USC Associate Vice President Indicted for Alleged Employment Tax Fraud, Resigns Amid Scandal

COLUMBIA, S.C. – A Shocking Turn of Events at USC

In a surprising twist, the University of South Carolina is making headlines due to a significant legal issue involving one of its high-ranking officials. Associate Vice President for Student Health and Well-Being, Mari Ross-Alexander, was indicted in federal court recently for allegedly failing to pay over employment taxes to the Internal Revenue Service (IRS). This news broke last week and has left the university community in a state of disbelief.

The Latest Developments

According to a spokesperson from the university, Ross-Alexander has resigned from her position, with her last day set for October 23rd. This decision followed the revelation of her indictment, which was first reported by the university’s student newspaper, the Daily Gamecock. It’s worth noting that Ross-Alexander had only started her position at the university in July 2023, where she took the lead in managing counseling and substance abuse programs.

Understanding the Allegations

The indictment alleges serious offenses connected to Ross-Alexander’s previous role as the owner and president of Ross Behavioral Group, a mental health counseling center she ran in Tennessee from 2011 until 2023. She faces 11 counts of “willful failure to account for and pay over employment tax.” Each of these counts carries a hefty penalty, with a maximum sentence of five years in prison and fines that could reach up to $250,000 or potentially twice the amount of the fine if deemed appropriate.

The core of the allegations is quite troubling. Federal investigators discovered that from 2015 to 2021, she withheld federal taxes from her employees’ wages but did not pass those taxes on to the IRS. The indictment claims she issued tax forms that misleadingly implied that these withheld funds were indeed being paid over to the IRS.

A Deepening Crisis

The tally for the unpaid taxes has reportedly exceeded a staggering $1 million. The IRS began reaching out to Ross-Alexander about the missing payments back in October 2018. Unfortunately, it seems those attempts went unanswered, as she did not rectify the situation.

A particularly noteworthy incident occurred in May 2020, during the COVID-19 pandemic when her business received a Paycheck Protection Program (PPP) loan. This relief was designed to support businesses like hers, providing over $130,000 for employee salaries and tax obligations. However, even after receiving this assistance, Ross-Alexander continued to withhold tax amounts from her employees without passing those funds to the IRS, as per the allegations.

Background on Ross-Alexander

With over a decade of experience in higher education, her biography on the USC website highlights a previous position as the associate vice chancellor of student affairs at the University of North Carolina at Charlotte. Given her extensive background, the news of these allegations comes as a shock not only to university officials but also to students and faculty alike.

What’s Next?

As this situation unfolds, the community is left grappling with the implications of such serious allegations within a prominent educational institution. Ross-Alexander’s departure and the gravity of the legal charges against her certainly cast a shadow over her short tenure at USC.

Conclusion

In a world where trust is paramount, the recent developments surrounding Mari Ross-Alexander serve as a sobering reminder of the responsibilities inherent in leadership positions. As the legal proceedings continue, the university community watches closely, eager for closure and clarity on this unsettling affair.

Stay tuned for more updates as this story develops.