The former owner of the Tennessee nursery declares himself guilty of federal taxes, electronic fraud charges

Nashville, Tenn. (WSMV) – The former owner of Two Middle Tennessee Daycares declared himself guilty of tax fraud and fraud charges. Rebekah Proctor, who recently sold Franklin Springs Academy in Franklin and closed Franklin Springs Academy in Chapel Hill, signed a guilt agreement with federal prosecutors on January 21, 2025.

Proctor declared himself guilty of two of the 20 federal charges collected against him by the Office of the United States Prosecutor in February 2024. As part of the agreement, Princer admitted not to charge on purpose and pay taxes and conjure a scheme to commit fraud wire. In the light of the statement of guilt, prosecutors will dismiss the other 18 positions at the time of the sentence.

The guilty agreement shows that, with only several exceptions, Proctor did not make the quarterly employment tax payments required from 2017 to 2022 and that owes to IRS $ 893,232.26 in restitution.

According to the guilt agreement, Proctor requested a loan of the Payment Check Protection Program (PPP) in April 2020 and certified that it was updated in its federal taxes, including payroll taxes. However, prosecutors said: “That certification was false and the defendant knew it was false. At the time of certification, the defendant had not submitted any of the 941 form required for his nursery business and had not made any of his labor tax payments since November 2017 “.

PPP money was supposed to be used to retain workers and keep payrol own personal expenses and personal expenses of your spouse. “

The WSMV4 reports discovered a second PPP loan, received by Proctor in 2021 for an amount of $ 118,000, also secured under false claims, according to the guilt agreement. Prosecutors said that, instead of using money to retain workers and keep the payroll or make payages of mortgage interests, lease payments and public service payments, Proctor spent money in itself and their spouse.

The prosecutors said that the taxes of the Trust Fund that retained employees and that IRS should have paid over $ 277,000. Proctor also owes more than $ 149,000 for the participation of your FICA tax employer.

Fiduciary fund taxes, or labor taxes are composed of taxes of the Federal Insurance Contribution Law (FICA) that represent Taxes on Social Security, Medicare and Federal Income. In addition to the retained fiduciary taxes, employers are also “forced to make contributions under FICA for Social Security and Medicare in amounts that coincide with the retained amounts of the payment of their employees for those purposes.”

Proctor is ordered to pay the restitution to the SBA for the PPP loans for a total of $ 223,800 and to the IRS for an amount of $ 893,232.26.

For Count 17, intentional breach of charging, giving account and paying over the tax, Proctor faces five years in prison, a fine of up to $ 250,000, released by up to three years and the loss of any property allowed by law.

For Count 19, the bank fraud, Proctor faces prison for up to 30 years, a fine of up to $ 1,000,000, release supervised for up to five years and the loss of any property allowed by law.

Proctor has not yet been sentenced.

WSMV4 Research has submitted multiple reports on Rebekah and Corey Proctor.

More recently, a grand jury from Bedford County accused Corey Proctor for 13 positions that include violation, incest, legal violation by a figure of aggravated sexual authority and aggression. The accusation was returned on Monday, January 13.

The authorities say The victim is a teenage relative of Corey Proctor’s wifeRebekah Proctor.

Franklin Springs Academy in Chapel Hill, who closed in September, was also at the center of a WSMV4 investigation for allowing a teacher to continue working in the center more than a year after they were written to get a child out horse. The teacher was finally condemned by Children’s abuse and assault positions.

The previous WSMV4 coverage of Franklin Springs Academy, Corey Proctor and Rebekah Proctor includes:

– Franklin Springs owner accused of federal charges, accused of using money from the payment check program itself

– Employees who hit on routinely late payment checks

– Franklin Springs Academy parents sending effective workers after late payment checks

– Franklin Springs academy workers run out of food or formula because payment checks bounced

– Franklin Springs Academy let an employee continue working with children after writing it to get the children for their hair