By Staff Report
Mar. 18, 2010
Two former owners of a temporary employment agency in Stoughton, Massachusetts, were charged Wednesday, March 17, on suspicion of paying more than $24 million in cash to workers in an effort to avoid paying more than $7 million in taxes and hundreds of thousands of dollars in workers’ compensation insurance premiums, the FBI has announced.
Michael Powers, 45, of Westport, Massachusetts, and John Mahan, 46, of Stoughton, were each charged with one count of conspiracy to defraud the IRS and their workers’ comp carrier, one count of mail fraud and two counts of false tax returns, according to the FBI.
Powers and Mahan owned Commonwealth Temporary Services Inc. from 2000 to 2004, which supplied temporary workers to businesses throughout eastern Massachusetts, according to the FBI. They each face a maximum of five years in prison and a $250,000 fine on the conspiracy charge, a maximum of 20 years in prison and a $250,000 fine on the mail fraud charge and, three years in prison and a $250,000 fine on the tax fraud charges.
Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail firstname.lastname@example.org.
We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.
ComplianceMinimum Wage by State in 2022 – All You Need to Know
Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...
federal law, minimum wage, pay rates, state law, wage law compliance
LegalCalifornia’s push for a 32-hour workweek explained, and how to prepare
Summary: California is considering a 32-hour workweek bill for businesses with over 500 staff 4 day wee...
32 hour workweek, 4 day workweek, california, legislature, overtime
LegalA business owner’s guide to restaurant tipping law
Business owners in the restaurant industry are in a unique position when it comes to employee tips. As ...
restaurants, tip laws, tipping