Bergenfield Masonry Contractor Accused of Spending $3.8M in Payroll Taxes on Luxury Cars and Vacations

the staff of the Ridgewood blog

BERGENFIELD, NJ – A Bergen County contractor is facing serious federal charges after allegedly failing to pay more than $3.8 million in payroll taxes, instead using the money to fund a lavish lifestyle that included luxury cars, NBA courtside tickets, and tropical vacations.

Nigel Kenneth Joseph, 45, of Bergenfield, was charged in the Southern District of New York with:

• 11 counts of failure to account for and pay over payroll taxes

• 2 counts of wire fraud

• 1 count of aggravated identity theft

The charges stem from his Bronx-based masonry business, BWK, federal prosecutors said.

Alleged Fraudulent Spending on Luxury Lifestyles

Instead of paying payroll taxes between 2019 and 2021, prosecutors say Joseph:

• Leased luxury vehicles, including a BMW 3-Series, Mercedes GLE, and BMW 5-Series

• Purchased courtside NBA tickets and a Rolex watch

• Paid for tropical trips to the Dominican Republic and Jamaica

• Transferred tens of thousands of dollars to his wife

• Made personal rental payments

Meanwhile, employees reportedly never received their W2 or 1099 tax forms, leaving them and the federal government in the dark.

“When someone uses employee payroll taxes to finance luxury vacations and cars, it’s the American people who are victimized,” said IRS Special Agent in Charge Harry T. Chavis.

How the Scheme Was Discovered

Joseph’s private accountant reportedly submitted payroll records to federal authorities, which helped uncover the fraud. Investigators say Joseph even told at least one employee that the IRS was “not paying attention” due to COVID.

In a text exchange, Joseph expressed worry about being caught, writing:

“We have big problems… with the taxes. Damn… I’m thinking I should not have put everyone working 35 hours every week.”

Later, he allegedly texted an employee about stopping the falsified filings with the accountant, adding:

“This is going to be the last month we do this with [the] accountant… and then you and I gonna do it ourselves. Fake it until we make it.”

What’s Next for the Bergenfield Contractor?

Joseph was arrested on Tuesday and appeared before U.S. Magistrate Judge Ona T. Wang.

If convicted, each of the 11 counts of failing to pay payroll taxes carries a maximum of 5 years in prison, while the wire fraud and identity theft charges add even more potential prison time.

The U.S. Attorney’s Office alleges that Joseph not only failed to pay employee taxes but also misused employees’ Social Security numbers and defrauded a construction contractor of millions of dollars.

A Cautionary Tale for Business Owners

The case highlights how federal authorities are cracking down on tax fraud, especially when employees are left vulnerable. Businesses that fail to properly pay and report payroll taxes risk not only stiff penalties but also federal prison time.

Joseph’s case serves as a warning to all employers about the severe consequences of misusing payroll funds.

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