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Massachusetts staffing firm operator sentenced to prison for tax crimes, insurance fraud

January 10, 2018

The operator of temporary employment agencies providing labor for Massachusetts companies in agricultural industries was sentenced Tuesday to two years in prison for tax crimes and insurance fraud, the US Attorney’s Office reported. Souleang Kane — who operated a series of temporary employment agencies under the names Expert Staffing, Affordable Staffing and M&K Temp Inc. — was also ordered to serve three years of supervised release and to pay restitution.

Kane in October pleaded guilty to 18 counts of willful failure to collect and pay over taxes to the Internal Revenue Service and five counts of mail fraud.

From 2010 to 2015, Kane evaded payment of more than $1.3 million in federal taxes by failing to report to the IRS approximately $4.3 million that her agencies paid in employee wages, according to the US Attorney’s Office. She also evaded more than $431,000 in Massachusetts state taxes.

In addition, Kane understated her business’ payroll in dealings with her workers’ compensation insurance providers, which fraudulently reduced her workers’ compensation insurance premiums by approximately $165,000 between 2010 and 2015, according to the US Attorney’s Office.