Owner of 5 Virginia pharmacies charged with payroll tax violation

The owner of five Virginia pharmacies has been accused of a payroll tax violation.

Jerry R. Harper Jr., 58, of Collinsville pleaded not guilty Tuesday in federal court to violating the federal tax code.

Four of the pharmacies are local: Family Discount Pharmacy in Stanleytown, Stuart Family Pharmacy in Stuart, Rocky Mount Family Pharmacy in Rocky Mount, and Chatham Family Pharmacy in Chatham. The other pharmacy is called Phamily Pharmacy, which is in Brosville. 

Harper has had control over the businesses from 1998 through at least 2014, and is a licensed pharmacist. He approved all payments made and controlled all of the bank accounts, according to court documents. 

Harper is accused of failing to pay to the IRS the payroll tax that was withheld from employees' paychecks. He then allegedly used the money for personal purposes, including stock market investments, payments for Haper's son's pharmacy school tuition, real estate purchases, and vehicle purchases. 

Harper has a hearing scheduled for May 4. It will be considered a "change of plea" hearing, where it is expected he will plead guilty.