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View All NewsFBI: Temp firm paid $24 million under table
March 17, 2010
Two former owners of a temporary employment agency in Stoughton MA were charged Wednesday on suspicion of paying more than $24 million in cash to workers in an effort to avoid paying more than $7 million dollars in taxes and hundreds of thousands of dollars in workers' compensation insurance premiums, the FBI announced.
Michael Powers, 45, of Westport MA, and John Mahan, 46, of Stoughton, were each charged with one count of conspiracy to defraud the IRS and their workers' comp carrier, one count of mail fraud and two counts of false tax returns, according to the FBI.
Powers and Mahan owned Commonwealth Temporary Services Inc. from 2000 to 2004, which supplied temporary workers to businesses throughout Eastern Massachusetts, according to the FBI. They face a maximum of five years in prison and a $250,000 fine on the conspiracy charge, a maximum of 20 years in prison and a $250,000 fine on the mail fraud charge and three years in prison and a $250,000 fine on the tax fraud charges.
Michael Powers, 45, of Westport MA, and John Mahan, 46, of Stoughton, were each charged with one count of conspiracy to defraud the IRS and their workers' comp carrier, one count of mail fraud and two counts of false tax returns, according to the FBI.
Powers and Mahan owned Commonwealth Temporary Services Inc. from 2000 to 2004, which supplied temporary workers to businesses throughout Eastern Massachusetts, according to the FBI. They face a maximum of five years in prison and a $250,000 fine on the conspiracy charge, a maximum of 20 years in prison and a $250,000 fine on the mail fraud charge and three years in prison and a $250,000 fine on the tax fraud charges.