Company exec pleads guilty to keeping taxes withheld from employee checks

FRANKFORT, Ky. — The manager of a number of coal-related businesses, including a trucking firm that laid off all employees and shut its doors earlier this year, has admitted to keeping more than $22 million in taxes withheld from employee paychecks for himself.

John Thomas Quintrell, of Harlan, pleaded guilty to six counts of failure to collect or pay a tax in Frankfort federal court on Wednesday.

Quintrell was the manager and sole member of Civil LLC, which closed its operations in Pikeville, Jenkins and Harlan earlier in June, laying off 32 employees. He is also listed as the manager and sole member of Pocahontas Processing, Resilient Mining, Falcon LLC and Kratos LLC.

According to his plea agreement, Civil LLC collected federal income and FICA taxes from employees’ paychecks, but never turned that money over to the government in all but four of the 22 quarters from Oct. 1, 2019, to March 31, 2025. As a result, the company failed to pay $22.1 million in taxes that were withheld from employee paychecks.

The plea agreement goes on to say Quintrell converted that money to his own personal use.

A judge must still approve the guilty plea. Once he does, the prosecution and defense have agreed that Quintrell will serve 48 months in prison and repay all of the money to the IRS.