According to United States Attorney John C. Gurganus, for a four-year period from 2017 to 2020, Ehrenberg willfully failed to collect and pay over to the IRS required federal payroll taxes in the total amount of $185,681.90. By paying his labor force, which was comprised mostly of undocumented immigrants, an all-cash wage, and by failing to properly account for and pay over any required payroll taxes, Ehrenberg deprived the government of substantial tax revenue. At sentencing, Ehrenberg was also ordered to make restitution to the IRS in the amount of $185,681.90.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Jeffery St John prosecuted the case.