Prosecutors say an Orange County staffing network withheld payroll taxes and used the funds for personal gain.
Federal authorities have charged the owner of a Southern California staffing network and several associates with participating in a long-running scheme that allegedly diverted more than $90 million in employment taxes. According to the U.S. Attorney’s Office, the group withheld payroll taxes from temporary workers, many of whom were illegal aliens, largely placed through companies operating in Los Angeles, Riverside, and surrounding counties, despite assuring client businesses that required filings and payments were being handled. Prosecutors alleged that the unpaid taxes were concealed through fraudulent reporting practices that spanned more than a decade.
The indictment stated the group used the unremitted tax funds to purchase homes, rental properties, luxury vehicles, and to finance high-end travel. Authorities also stated that some defendants posted aspects of this lifestyle on social media.
Several individuals were arrested and appeared in federal court, while others are expected to appear in the coming weeks. The indictment claims the alleged conduct resulted in substantial losses to both federal and state tax systems.
As the Lord Leads, Pray with Us…
- For Treasury Secretary Scott Bessent as he collaborates on the investigation of tax law violations.
- For IRS officials as they review business and employment tax filings and seek to ensure compliance with federal laws.
- For the judges who hear cases to rule according to and accurately interpret the laws enacted by Congress.
Sources: MSN, My News LA, UPI News
