COLUMBIA, S.C. (WIS) – An associate vice president at the University of South Carolina was indicted in federal court last week after investigators accused her of not paying employment taxes to the Internal Revenue Service.
A university spokesperson confirmed Mari Ross-Alexander, Associate Vice President for Student Health and Well-Being, resigned and her last day at the school would be Oct. 23.
The indictment was initially reported on Tuesday by the university’s student newspaper, the Daily Gamecock.
Ross-Alexander began her role at the university in July 2023 where she was in charge of counseling and substance abuse.
The allegations from the U.S. Department of Justice relate to a company she ran in Tennessee, Ross Behavioral Group, which was a mental health counseling center.
Mari Alexander by maggie.brown.wistv on Scribd
Ross-Alexander is facing 11 counts of “willful failure to account for and pay over employment tax.” The maximum sentence for each of those charges is five years, and the maximum fine is $250,000 or twice the amount gained or loss from the offense.
Ross-Alexander was the owner and president of the company from 2011 until 2023, according to the federal indictment.
Her biography on USC’s website said she has more than 10 years of experience in higher education and previously served as associate vice chancellor of student affairs at the University of North Carolina at Charlotte.
Federal investigators found that Ross-Alexander withheld federal taxes from her employees’ wages but did not fully pay them over to the IRS, the indictment said.
The indictment alleges every year, from at least 2015 to 2021, she issued forms and tax statements to her employees that “falsely” implied their withheld funds were being given to the IRS.
The amount of taxes she failed to pay totaled to more than $1 million, the indictment said.
According to the filing, the IRS began contacting Ross-Alexander regarding the unpaid taxes in October 2018. Despite multiple attempts to reach her, she did not pay back the taxes, the indictment said.
Then, in May 2020, Ross-Alexander’s company received a Paycheck Protection Program (PPP) loan as part of relief sent to local businesses during the COVID-19 pandemic.
Ross-Alexander‘s company was given more than $130,000 to pay its employees and taxes — but she continued to withhold taxes on her employee’s accounts and not pay the IRS those taxes on their behalf, the indictment said.
The indictment also alleges she is the only person responsible for the finances at Ross Behavioral Group.
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