June 25, 2024
A staffing government 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, based on the division. Sing pleaded responsible to conspiring to not paying $1.36 million in federal employment taxes.
Sing was an operator and supervisor of International Staffing Companies, which was primarily based in Philadelphia, based on courtroom information. The division mentioned Sing and others paid workers in money to hide earnings and wages from the IRS. Sing additionally pleaded responsible to paying $400,000 in bribes to managers on the staffing corporations’ shoppers in change 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 didn’t file private tax returns from 2014 by means of 2020 regardless of spending greater than $1 million at native casinos, based on the division.
Individually, staffing purchaser Mark Holmes, 67, of Muskogee, Oklahoma, pleaded responsible to accepting $400,000 in bribes and kickbacks from International Staffing Companies and Penns Impartial Staffing in change for hiring their workers, based on 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 short-term staffing agency that he owned and operated.
The incidents with Sing happened between 2013, and the incidents with Holmes happened between 2014 and 2020.
“Nobody desires to go to jail, however the sentence was honest, with all the circumstances,” Chuck Peruto, Sing’s legal professional, mentioned in an e-mail to SIA.
An legal professional 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, based on 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 didn’t report worker wages to the IRS, leading to roughly $67,000 in employment taxes owed however by no means paid. Nieves additionally didn’t report her personal private earnings 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, based on 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 didn’t pay $300,000 in employment taxes.
- Den Lam, age 49, of Philadelphia was charged in an data alleging that he conspired with different people to evade federal earnings taxes for roughly $1.6 million in wages paid by International 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 International 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 International Staffing Companies and Penns Impartial Staffing, based on the division. Bonnewell acquired the cash in change for hiring the staffing corporations’ workers. The 2 staffing corporations, in flip, acquired roughly $13.0 million from Bonnewell’s employer. Bonnewell additionally pleaded responsible to failing to reveal money earnings on his private tax returns. He awaits sentencing after pleading responsible on Could 2 of this yr.
- Jose L. Ortiz, age 48, of Drums, Pennsylvania, pleaded responsible to conspiring to commit trustworthy providers fraud, based on the division. Ortiz was a supervisor and director at a Pennsylvania meals providers firm from 2014 to 2021 who alongside together with his co-conspirators accepted money bribes and different issues of worth from different co-conspirators who owned and operated International Staffing and Penns Impartial. In change for the kickbacks, Ortiz and his co-conspirators entered contracts with the staffing corporations and employed their workers, paying them over $18.0 million, based on the division.