Peter Labovitz, newspaper publisher, pleads guilty to failing to pay IRS more than $940,000

Peter Labovitz, of Alexandria, Va., president of Connections Newspapers LLC, pleaded guilty to two counts of failing to pay more than $940,000 in employment taxes to the Internal Revenue Service, the Justice Department and IRS announced today.

According to the plea agreement and statement of facts, Labovitz ran Connection Newspapers' day-to-day operations, directed employees, approved payments by the company and made financial decisions on behalf of the company.

Labovitz admitted that between 2002 and 2008, he caused to be deducted and collected from the total taxable wages of his employees federal income taxes and FICA taxes, but didn’t pay more than $940,000 in federal income taxes and FICA taxes withheld and due and owing to the United States..

Labovitz was the president of Connection Newspapers LLC, a Northern Virginia newspaper publisher that currently publishes approximately 15 community newspapers throughout Northern Virginia and Maryland.

Labovitz faces up to one year in prison, a $100,000 fine and up to one year of supervised release for each count of conviction. Magistrate Judge John F. Anderson scheduled sentencing for Sept. 27.