LYNN — Bill Cushing, of Lynn, said he feels like he was stabbed in the back after his longtime bookkeeper failed to make a significant amount of tax payments on behalf of the restaurant he owns in Reading.
Now, Cushing, owner of Christopher’s Restaurant, owes more than $60,000 in back taxes to the Internal Revenue Service, and doesn’t expect he will be able to recoup the money.
His longtime payroll company, Northeast Abacus, Inc., filed for bankruptcy in late June, and Patricia Lindau, the friendly owner he fondly remembers chatting with for years, has not returned his calls or emails.
The saga started for Cushing in early May, when he received an email from the Maine payroll company that stated they could no longer process his payroll “due to unforeseen circumstances.”
Since he had been a client of the company for more than a decade and enjoyed a “good relationship” with the owners, his first concern was not for himself and his business, but for Lindau, who he feared was in poor health.
“When I got that email, I was concerned because I’m thinking that’s not like Patricia just to end things without saying anything,” said Cushing. “With the virus going around, I thought that something happened to her, that she was ill or might have passed but obviously that turned out not to be right.”
Cushing repeatedly tried to contact the bookkeeping company because they were supposed to send over his restaurant’s payroll information, but his requests fell on deaf ears. Not only was the company’s phone disconnected, but his emails went unanswered.
He then reached out to the Attorney General’s office and the Office of Consumer Affairs and was told that they could not get involved.
Cushing later received a letter that stated his payroll company had declared bankruptcy through the District of Maine and that his restaurant was one of the top 20 businesses that the company owed, in terms of which businesses were owed the largest amount of money.
“It’s just a shock,” said Cushing. “You put that trust in people for all that time and I don’t know, it was like being stabbed in the back. It was hard enough just staying afloat just during this whole shutdown.”
Cushing said he would occasionally get late notices from the IRS, but Lindau would always assure him that his taxes had already been paid. He did not think anything was amiss as he continued to see money withdrawn from his account.
According to U.S. Bankruptcy Court documents, Lindau estimated that Northeast Abacus, Inc owes between $1 million to $10 million to more than 60 companies, many of whom are small family restaurants and shops in New England.
The company owes more than $1.2 million to the top 20 businesses listed alone, with one Boston-based business, the Thornton Companies, owed more than $200,000, according to a court filing, which only lists amounts for those 20 companies.
On Thursday, Lindau, 60, of Newburgh, Maine, was issued a criminal complaint and charged with two counts each of larceny and embezzlement, according to the Essex County District Attorney’s office.
Lindau is expected to be arraigned in Newburyport District Court on July 21.
The DA’s office launched an investigation after receiving complaints from two former clients of Lindau’s payroll services firm. The complaint alleged that Lindau had stolen an estimated $60,300 from two small businesses, located in Danvers and Haverhill, when she failed to pay their state taxes, according to DA spokesperson Carrie Kimball.
Kimball said the investigation is ongoing and additional charges are possible.
The Attorney General’s office has received two complaints regarding the payroll company’s tax issues, and referred them to the Department of Revenue, according to a spokesperson.
Lindau’s attorney, James F. Molleur, of the Maine-based Molleur Law Office, did not respond to a request for comment but said in a court filing that Lindau and her husband planned to liquidate assets, including their house in Maine, with the aim of paying off creditors within three to five years, according to a report from the Boston Globe.
Cushing said he knows a couple of other businesses have filed lawsuits against the company, but he’s not sure if he will take that route. He’s been speaking with attorneys about his options, but is not optimistic that he will get his money back.
“It’s going to be difficult, but we’ve got some great customers,” said Cushing. “We’ll get through it. We’ll have to make a plan with the federal government and just pay it. I’m hoping they’ll be held accountable.”
