Court of Appeals upholds conviction of Greensboro businessman

Greg Harrison

A three-judge panel of the US Court of Appeals for the Fourth Circuit upheld the conviction of Greg Harrison, a Greensboro resident who operated a national chain of temporary labor agencies in the 2000s while financing movies and nightclubs in a decision on Oct. 3.

US District Court Judge James A. Beaty sentenced Harrison to 12 years in prison and ordered him to pay $43.2 million in restitution in 2012 following his conviction for payroll tax fraud.

The ruling summarized the case:

Harrison owned and operated several temporary staffing agencies and offices in Greensboro, North Carolina. Although Harrison employed a large workforce, he failed to file required Internal Revenue Service (IRS) forms and failed to collect and withhold, inter alia, payroll taxes. Harrison also failed to file personal tax returns for 2004, 2005 and 2006. In late 2006, Harrison sold the staffing companies to two employees. While those employees operated the companies, the payroll taxes were paid and employment tax returns were filed. In 2008, Harrison reacquired the companies and again stopped paying payroll taxes. Harrison used these withheld payments to fund his lifestyle, including the purchase of a luxury beach house and the production of two motion pictures, National Lampoon's Pucked, featuring Jon Bon Jovi, and Home of the Giants. 

The court found that the case was adequately presented in written materials and determined that oral arguments were not necessary to render a decision.