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Jury convicts Tennessee staffing firm exec on tax charges; money used for cars and mortgage payments

December 12, 2017

A federal jury in Memphis convicted staffing executive Mark Stinson on Dec. 8 of tax charges, the US Department of Justice reported. Stinson and his wife, Jayton Stinson, operated a staffing company in Memphis, but failed to pay $2.8 million in withholdings and other employment taxes. Jayton Stinson previously pleaded guilty to conspiracy charges in the case.

The Department of Justice said the couple used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payment and private school tuition.

The Stinsons operated a temporary staffing company from 2005 through 2015, but changed the name and structure of the company several times to in an effort to avoid paying taxes, according the Department of Justice. It operated as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.

In addition, the Stinsons conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the department said the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments.

Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled, and received a substantial portion of the fraudulent refund, according to the department.

Mark Stinson faces possible prison time, and will be sentenced on March 1. Jayton Stinson will be sentenced on Jan. 31.