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A former owner of Alliance Staffing Management Inc. pleaded guilty to willfully failing to account for and pay over employment taxes, the U.S. Justice Department reported. The former owner, Richard Whatley, entered the plea Friday in federal court in Salt Lake City. He faces between 41 months and 51 months in prison, and he must pay $541,513 in restitution, according to the department.
Whatley had an ownership interest in employee leasing firm Alliance Staffing Management from 2002 and 2004, according to the department. The company collected taxes from employee wages but failed to pay more than $541,513 in employment taxes to the IRS.
Whatley is scheduled to be sentenced on July 10.