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Staffing firm operators indicted for conspiracy, employment tax fraud

November 17, 2016

Operators of a Tennessee staffing firm were indicted for conspiracy and employment tax fraud, the US Department of Justice announced. A federal grand jury sitting in Memphis, Tenn., returned an indictment on Nov. 10, and it was unsealed Tuesday.

According to the indictment, from 2005 through 2015, Mark and Jayton Stinson operated a temporary staffing company and failed to pay more than $2.8 million in employment taxes to the IRS, failed to timely file employment tax returns and filed false employment tax returns.

The indictment alleges that despite having the same line of business and substantially the same customers, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc. and Complete Employment Agency. 

The Stinsons were each arrested Tuesday and charged with one count of conspiring to defraud the United States and five counts of failing to truthfully account for and pay payroll taxes. Mark Stinson was also charged with five counts of filing false tax returns, one count of theft of government funds, and one count of aggravated identity theft. 

If convicted, the Stinsons face a statutory maximum sentence of five years in prison for the conspiracy count and for each count of failing to pay employment taxes. Mark Stinson also faces a statutory maximum sentence of three years in prison for each false return count, 10 years in prison for theft of government funds and a mandatory sentence of two years in prison for the aggravated identity theft charge, which will be in addition to any other term of imprisonment he receives. Both defendants also face a period of supervised release and monetary penalties.