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Staffing Firm Owner Gets 18 Months in Prison

October 01 2012

The owner and operator of New Jersey-based temporary employment agency, Tri State Labor Services Inc., was sentenced to 18 months in prison in a scheme that included the nonpayment of taxes on $1 million in wages, the U.S. Attorney’s Office reported. The owner must also serve three years of supervised release and pay restitution of $163,838.

The owner, Vanna Kem, 42, of Sicklerville, N.J., had pleaded guilty in April to one count of tax evasion, according to the U.S. Attorney’s Office.

From the first quarter of 2006 through the last quarter of 2008, Kem paid Tri State employees more than $1 million in cash wages without withholding employment taxes, according to the U.S. Attorney’s Office. She also failed to file employer’s quarterly federal tax returns in which she was required to report the wages paid to her employees.

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