June 25, 2024
A staffing govt and a purchaser have been each sentenced to jail for schemes that concerned bribery and nonpayment of federal employment taxes, the US Division of Justice mentioned in an announcement on June 21.
The staffing exec, Danny Sing, 61, of Philadelphia, was sentenced to 27 months in jail, in keeping with the division. Sing pleaded responsible to conspiring to not paying $1.36 million in federal employment taxes.
Sing was an operator and supervisor of World Staffing Companies, which was primarily based in Philadelphia, in keeping with court docket data. The division mentioned Sing and others paid staff in money to hide revenue and wages from the IRS. Sing additionally pleaded responsible to paying $400,000 in bribes to managers on the staffing corporations’ shoppers in alternate for enterprise. Sing and others acquired greater than $16.5 million from one Pennsylvania meals providers firm for his or her corporations.
As well as, Sing did not file private tax returns from 2014 by means of 2020 regardless of spending greater than $1 million at native casinos, in keeping with the division.
Individually, staffing purchaser Mark Holmes, 67, of Muskogee, Oklahoma, pleaded responsible to accepting $400,000 in bribes and kickbacks from World Staffing Companies and Penns Impartial Staffing in alternate for hiring their staff, in keeping with the division. Holmes was sentenced to 18 months in jail.
The staffing corporations acquired $7.8 million from Holmes’ employer, the division mentioned. Holmes additionally pleaded responsible to failing to pay roughly $135,000 in employment taxes to the IRS that have been owed by Encore Staffing Options, one other non permanent staffing agency that he owned and operated.
The incidents with Sing occurred between 2013, and the incidents with Holmes occurred between 2014 and 2020.
“Nobody desires to go to jail, however the sentence was truthful, with all the circumstances,” Chuck Peruto, Sing’s lawyer, mentioned in an e-mail to SIA.
An lawyer for Holmes has additionally been contacted for remark.
The Division of Justice famous 5 different people have been beforehand prosecuted on this investigation:
- Madeline Nieves, age 49, of Plains, Pennsylvania, pleaded responsible to a tax fraud conspiracy, in keeping with the division. Nieves was sentenced to 6 months in jail. She conspired with different people to defraud the IRS from 2018 to 2020 in reference to staffing firm Encore Staffing Options, which she owned and operated with Holmes. Nieves did not report worker wages to the IRS, leading to roughly $67,000 in employment taxes owed however by no means paid. Nieves additionally did not report her personal private revenue from Encore Staffing Options to the IRS.
- Nari Lam, age 31, of Wilmington, Delaware, pleaded responsible to failing to remit employment taxes to the IRS, in keeping with the Justice Division. Lam was sentenced in November 2023 to a few years’ probation. Lam owned Penns Impartial Staffing from 2016 by means of 2020 and did not pay $300,000 in employment taxes.
- Den Lam, age 49, of Philadelphia was charged in an info alleging that he conspired with different people to evade federal revenue taxes for about $1.6 million in wages paid by World Staffing Companies. Lam additionally was charged with failing to withhold and remit roughly $1.36 million in federal employment taxes owed however by no means paid by World Staffing Companies.
- Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, pleaded responsible to accepting, as a supervisor of the Pennsylvania meals providers firm, roughly $150,000 in bribes and kickbacks from World Staffing Companies and Penns Impartial Staffing, in keeping with the division. Bonnewell acquired the cash in alternate for hiring the staffing corporations’ staff. The 2 staffing corporations, in flip, acquired roughly $13.0 million from Bonnewell’s employer. Bonnewell additionally pleaded responsible to failing to reveal money revenue on his private tax returns. He awaits sentencing after pleading responsible on Might 2 of this yr.
- Jose L. Ortiz, age 48, of Drums, Pennsylvania, pleaded responsible to conspiring to commit sincere providers fraud, in keeping with the division. Ortiz was a supervisor and director at a Pennsylvania meals providers firm from 2014 to 2021 who alongside along with his co-conspirators accepted money bribes and different issues of worth from different co-conspirators who owned and operated World Staffing and Penns Impartial. In alternate for the kickbacks, Ortiz and his co-conspirators entered contracts with the staffing corporations and employed their staff, paying them over $18.0 million, in keeping with the division.
