Legal

Staffing Executive Convicted for Not Paying $15 Million

By Staffing report

Dec. 22, 2011

A former staffing company executive was convicted Dec. 20 of failing to pay more than $15 million in payroll taxes, the U.S. Attorney’s Office reported.

Bruce Gregory Harrison III, of Greensboro, North Carolina, did business under various corporate names, including U.S.A. Staffing and Compensation Management Inc., according to the U.S. Attorney’s Office. He owned or controlled companies in at least nine states. The companies were based in Guilford County, North Carolina, and provided temporary workers.

Harrison failed to account and pay for more than $15 million in federal payroll taxes for employees of those companies, according to the U.S. Attorney’s Office.

However, money from the firms was used to buy homes and a yacht for Harrison as well as to finance commercial motion pictures including “National Lampoon’s Pucked” and “Home of the Giants,” the U.S. Attorney’s Office reported.

Harrison presented false bank statements to auditors to conceal the nonpayment of taxes, according to the U.S. Attorney’s office. He was also convicted of failing to timely file his own income tax returns for 2004, 2005 and 2006

A judge ordered Harrison detained after the verdict, and sentencing has been set for April 6.

Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, email editors@workforce.com.

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