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Temp firm owner gets prison, owes $1.5 million

March 23, 2009

A temporary employment agency owner was sentenced Friday to 41 months in prison and ordered to pay $1.5 million to the Internal Revenue Service, the U.S. Attorney's Office for the Western District of Texas reported. Owner Terrell Diamond, a former resident of San Antonio TX, pleaded guilty to one count of conspiracy to defraud the IRS on April 24, 2008.

Diamond's ex-husband, William Diamond, pleaded guilty to the same charge on Feb. 29, 2008, and faces up to five years in prison, according to the office. He will be sentenced on May 8.

The Diamonds conspired to defraud the IRS of $1.5 million in employment taxes between November 1996 and June 2003, according to the office. The employment taxes related to temporary agencies owned by the Diamonds, including offices of Ameriforce and Primo Labor.