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Staffing firm owner-operator gets 15 months in prison in tax case

October 13, 2023

The owner-operator of a Pennsylvania staffing firm was sentenced to 15 months in prison for conspiring to defraud the IRS, the US Attorney’s Office announced Oct. 11.

Madeline Nieves, 49, of Wilkes-Barre, Pennsylvania, previously pleaded guilty, according to the office. Neives did not report wages paid to employees from her company, Encore Staffing Solutions LLC, to the IRS. She also failed to report her own personal income from the company. The failures took place from 2018 to 2020.

In addition to 15 months in prison, Nieves must also pay $160,000 in restitution. She will also serve three years of supervised release after prison, according to the announcement.

SIA has reached out to Nieves’ attorney for comment.

Three others pleaded guilty to charges that stemmed from the Justice Department’s investigation around this case. One other person was charged in an information, while a fifth person was indicted.