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submitted 10 hours ago by velma@sh.itjust.works to c/seattle@lemmy.world

Seattle resident Ruadhri “Rory” McCormick, 44, entered a plea agreement in July for failing to pay Social Security, unemployment and Medicare taxes related to his Capitol Hill establishment, Single Shot.

Employing as many as 87 cooks, servers and bartenders between 2014 and 2024, McCormick “withheld payroll taxes from employee paychecks,” but “kept the money and failed to pay it over to the Internal Revenue Service,” according to the U.S. Department of Justice. The subsequent investigation found he spent nearly $400,000 buying and renovating a house on Vashon Island, nearly $125,000 in connection with casinos and upwards of $38,000 on travel, according to the release.

“This defendant chose to use money that should have gone to pay for the employee’s future benefits, to pay to remodel a home on Vashon Island,” said Neil Floyd, acting U.S. attorney for the Western District of Washington, in prepared remarks. “Unfortunately, the employee’s Social Security work records now show gaps where they don’t have credit for the years they put in at McCormick’s restaurant.”

McCormick was also ordered to pay about $1.45 million in restitution. In his plea agreement, McCormick also stated that he did not file personal income taxes for any tax year between 2015 and 2024, according to the release.

According to a defense sentencing memorandum, McCormick grew up in North Vancouver, B.C., and has worked in the Seattle restaurant industry for about two decades. He had partial ownership of El Grito Taqueria and late-night restaurant re:public in South Lake Union, though only the restaurant he wholly owned, Single Shot, was linked to unpaid taxes.

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[-] jtrek@startrek.website 8 points 9 hours ago

Jail time is unusual for wage theft, but heavy penalties are probably the only way to get people to stay in line.

[-] SonarTaxLaw@lemmy.world 10 points 9 hours ago* (last edited 9 hours ago)

This was tax fraud, not wage theft (though I absolutely acknowledge that wage theft is a massive issue that is not treated or investigated as seriously as it should be - but I will also give a shout out to Seattle's office of labor standards as they do a great job of getting employees their owed wages).

[-] jtrek@startrek.website 4 points 9 hours ago

I thought (but not very hard) that by not paying the workers taxes, they would be denied their full social security payout , or be on the hook in some other way. But you're probably more correct than I am.

[-] Blibittyblah@futurology.today 2 points 8 hours ago

I think they assume income tax. Either way, businesses screwing people.

[-] velma@sh.itjust.works 6 points 10 hours ago
this post was submitted on 28 Oct 2026
41 points (100.0% liked)

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