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Employment Agency Paid $1 Million in Cash Wages

April 20 2012

The owner of a New Jersey-based temporary employment agency pleaded guilty to one count of tax evasion after not paying employment taxes on more than $1 million in wages, the U.S. Attorney’s Office for the District of New Jersey reported.

Vanna Kem, 42, of Sicklerville, N.J., owned Tri State Labor Services Inc. The U.S. Attorney’s Office reported that Kem paid cash wages of more than $1 million between 2006 and 2008 without withholding taxes and failed to file IRS forms 941.

The staffing firm owner agreed to pay $163,837 in restitution to the IRS, according to the U.S. Attorney’s Office. The tax evasion charge also carries a maximum sentence of five years in prison and a $250,000 fine. Kem will be sentenced on Sept. 28.

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