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A former staffing executive in North Carolina was sentenced Wednesday to 12 years in prison for payroll tax fraud after failing to pay more than $40 million in federal payroll taxes, the U.S. Department of Justice announced.
Bruce Gregory Harrison III, of Greensboro, N.C., was convicted in December for payroll tax fraud and other crimes, according to the Department of Justice.
Harrison didn’t pay $40 million in federal taxes withheld from the pay of temporary employees, according to the Department of Justice. The incidents happened between 2004 and 2006 as well as in 2009.
The defendant did business under various names including U.S.A. Staffing and Compensation Management Inc., and his companies were headquartered in Guilford County, N.C., according to the Department of Justice. He owned or controlled temporary staffing firms in at least nine states.
Harrison also caused false bank statements to be presented to auditors to conceal nonpayment of payroll taxes, according to the Department of Justice. He used company funds to buy homes, a yacht and finance motion pictures, according to the Department of Justice. Films financed by Harrison include “National Lampoon’s Pucked” and “Home of the Giants.”
Harrison was also convicted for failing to timely file his own income tax returns for 2004, 2005 and 2006.