Options Staffing owner Pedro Carbajal was arrested after allegedly billing a trucking company $700,000 for phantom employees whose names were listed on invoices but never appeared for work, according to an announcement from Camelia Valdes, prosecutor for Passaic County in New Jersey.

Carbajal billed the company over a period of 14 months starting in 2013 through his company based in Passaic, according to the prosecutor. Carbajal also failed to turn over state payroll deductions withheld from paychecks and did not maintain workers’ comp insurance.

The company also failed to file corporate business tax returns, and Carbajal failed to file a personal New Jersey income tax return for 2016, according to the allegations.

Carbajal’s company provided temporary workers for warehouse, loading dock and trucking jobs.

The prosecutor noted these are only accusations at this time; Carbajal is presumed innocent until proven guilty. And on investigation is ongoing.

In a separate case, the US Department of Justice announced former Memphis staffing company owners Mark Stinson was sentenced to more than six years and his wife Jayton Stinson were sentenced to one year in prison in a tax fraud case. The Stinsons failed to pay more than $2.8 million in withholdings and other employment taxes to the IRS, failed to file employment tax returns timely and filed false employment tax returns.

The money was used for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments and private school tuition, according to the department.

Mark Stinson had been convicted by a jury in December.

In addition to their prison terms, the Stinsons were ordered to pay restitution of $2.8 million, according to the department.