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Three former professional employment organization executives were sentenced in Texas on Friday to prison and ordered to pay $133 million in restitution, the U.S. Attorney’s Office for the Western District of Texas announced.
Defendants operated a string of PEOs. They took monies from clients that were supposed to go for payments on payroll taxes and insurance premiums and diverted it to themselves, according to the U.S. Attorney’s Office. The incidents happened between 2002 and 2008.
First defendant John Bean received a sentence of six years in prison and was ordered to pay $120 million in restitution.
Bean owned Synergy Personnel, a San Antonio-based PEO. He also served as a representative of another PEO called Service Professionals.
Bean pleaded guilty in March 2013 to money laundering and mail fraud conspiracy charges.
Second defendant Pat More owned and managed several PEOs, including Service Professionals. He was sentenced to three years in prison and ordered to pay $10 million in restitution. He pleaded guilty in November 2011.
Third defendant Mike Solis, an executive at several PEOs including Service Professional, was sentenced to two years in prison.
Fourth defendant John Walker II owned and managed several San Antonio-Based PEOs. He was sentenced to five years of probation and ordered to pay $450,000 in restitution. Walker’s PEOs included AK of Nevada Inc., United Focus Inc. and Safe Staff Inc.
Two other defendants — Larry Kimes and Charles Pircher — will be sentenced in the next two months. Kimes managed AccounTex Financial Services LLC. Kimes’ bond was revoked Friday, and he was taken into custody. Pircher managed several San Antonio-based PEOs, including Service Professionals.
“The defendants involved in this, the largest ever single criminal tax case in San Antonio’s history, knowingly violated our country’s tax laws,” said Steve McCollough, IRS criminal special agent in charge. “They chose to ignore their responsibilities and live a lavish lifestyle on money belonging to their employees and to the U.S. government.”