GEORGETOWN — A 43-year-old Georgetown man and his 35-year-old wife were arrested Aug. 19 on charges of failing to file tax returns and pay taxes and a host of other tax-related charges.
Larry A. Sypolt, owner of the now-defunct LASCO Corp., an intelligence analyst company out of Columbia, was charged with one count of failure to file a tax return and pay taxes; two counts of tax evasion; two counts of willful failure to collect, account for, and pay withholding tax; and one count of conspiracy.
Sypolt, who ran for Columbia mayor in 2013, was being held in the Alvin S. Glenn Detention Center in Columbia on Aug. 19.
Court documents show for tax year 2017, Sypolt failed to file a South Carolina individual income tax return. Having earned $81,632 in wages and about $355,583 in income from his business, Sypolt was required to file a return based on his income, according to a statement from the Department of Revenue.
He failed to pay more than $9,800 in taxes due to the state, documents show. If convicted, Sypolt faces up to one year in prison and a fine of $10,000 for this charge.
On his 2018 state individual income tax return, Sypolt underreported his wages by $122,090 and failed to report about $697,843 in income earned from operating his business, according to warrants.
On his 2019 state individual income tax return, Sypolt inflated his business expenses and reported a loss of $474,050 in income when he actually earned about $126,696 in income from his business, according to the statement.
For the two years, he attempted to evade more than $23,500 in state income tax, the court alleges. If convicted, Sypolt faces up to five years in prison and a fine of $10,000 per tax evasion charge.
According to warrants, Sypolt withheld a total of $61,807 in taxes from employees' pay for tax years 2017 and 2018. He paid $13,918 of the withheld taxes to the SCDOR but diverted the rest of the funds, a total of $47,889, for personal use, the court alleges. If convicted, Sypolt faces up to five years in prison and a fine of $10,000 per failure to collect and pay withholding tax charge.
The court also alleges that in October 2019, Sypolt conspired with his wife to deliver a false document to the SCDOR. According to the warrant, he instructed his wife to create a fraudulent W-2 on his behalf that underreported his 2018 wages and then submit the W-2 to the SCDOR. If convicted, Sypolt faces up to five years in prison and a fine of $5,000.
His wife, Jennifer L. Sypolt, was arrested Aug. 16 on one count of forgery and one count of conspiracy. As Larry Sypolt's co-conspirator, she willfully created and then submitted a fraudulent W-2 in October 2019 on behalf of her husband, according to court documents.
The W-2 reflected underreported wages, according to the statement. With the fraudulent numbers, she assisted Larry Sypolt in attempting to receive a $2,278 refund, court documents show.
Jennifer Sypolt was released from Alvin S. Glenn Detention Center with no bond. If convicted, she faces up to three years in prison and a fine at the discretion of the court for the forgery charge and up to five years in prison and a fine of $5,000 for the conspiracy charge.
Larry Sypolt has said he spent 10 years with the Richland County Sheriff's Office and five years with the Federal Bureau of Investigation. He ran a failed attempt for mayor of Columbia in November 2013. Media reports out of New Jersey show Sypolt was arrested in February 2020 in Atlantic City after he allegedly tried to sell an assault rifle at a casino.
Police said Sypolt was found with a handgun and a rifle in a parking garage.