Associate Vice President Indicted for Failing to Pay Over $1 Million in Employment Taxes at University of South Carolina

Columbia, S.C. – Associate Vice President Indicted for Employment Tax Issues

In a shocking turn of events for the University of South Carolina, Mari Ross-Alexander, who recently took on the role of Associate Vice President for Student Health and Well-Being, has been indicted in federal court following serious allegations regarding her financial conduct. Federal investigations accuse Ross-Alexander of failing to pay over employment taxes owed to the Internal Revenue Service (IRS), raising eyebrows among university stakeholders and the community at large.

Just this past week, a university spokesperson confirmed that Ross-Alexander tendered her resignation, marking her final day at the university as October 23, 2023. Her departure comes hot on the heels of the indictment, which was first reported by the university’s student publication, the Daily Gamecock.

A Look into the Allegations

The indictment lays out a series of serious accusations against Ross-Alexander stemming from her time as the owner and president of a mental health counseling center, Ross Behavioral Group, which she operated in Tennessee from 2011 until 2023. According to the U.S. Department of Justice, Ross-Alexander is facing an alarming 11 counts of “willful failure to account for and pay over employment tax,” with the charges linked to her handling of employee wages and tax withholdings.

Each charge she faces carries a maximum penalty of five years in prison and a potential fine of up to $250,000, or twice the amount gained or lost from the offense. The gravity of these allegations raises serious questions about her leadership and integrity, particularly given her high-ranking position at USC.

How Did It Happen?

According to the indictment, Ross-Alexander withheld federal taxes from her employees’ wages but failed to pass those funds onto the IRS, amounting to a staggering total of over $1 million in unpaid taxes from at least 2015 to 2021. Even more troubling is the allegation that she issued tax statements to her employees that “falsely” suggested their withheld funds had indeed been paid to the IRS.

The situation escalated when the IRS first reached out to Ross-Alexander in October 2018 regarding the unpaid taxes. Despite multiple attempts to resolve the matter, it appears she did not take appropriate action to pay back the amounts owed. To complicate matters further, in May 2020, her company received a Paycheck Protection Program (PPP) loan exceeding $130,000 aimed at assisting local businesses during the COVID-19 pandemic. However, instead of rectifying the tax issues, she allegedly continued to withhold taxes from her employees’ accounts without remitting those payments to the IRS.

A Trajectory of Experience

Ross-Alexander, who had only recently started her role at USC in July 2023, possessed more than a decade’s worth of experience in higher education. Prior to her tenure at the University of South Carolina, she served as the Associate Vice Chancellor of Student Affairs at the University of North Carolina at Charlotte.

The abrupt turn of events is not only a personal crisis for Ross-Alexander but also a significant moment for the university as it grapples with the implications of this legal situation. Students and faculty alike are left to ponder the integrity of leadership roles and the responsibilities that come with it.

A Bitter End

As the legal proceedings continue, the university community will likely be watching closely. With Ross-Alexander resigning her post amid these serious allegations, many are left contemplating how such situations can be prevented in the future. The circumstances surrounding this case highlight the importance of transparency and accountability in leadership roles, particularly within educational institutions.

For now, the community in Columbia observes as this situation evolves, hoping to learn from the lessons it presents.