Philadelphia Men Charged With Tax Fraud And Commercial Bribery Offenses
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 5, 2022, Den Lam, age 48, and Danny Sing, age 59, both of Philadelphia, Pennsylvania, were charged in criminal informations with various federal tax offenses and commercial bribery.
According to United States Attorney Gerard M. Karam, the information filed against Den Lam alleges that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. (Global Staffing), a temporary staffing company that he and his coconspirators owned and operated. Global Staffing leased temporary employees to a manufacturing business in northeastern Pennsylvania. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing to the Internal Revenue Service (IRS).
The information filed against Danny Sing alleges that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing, and to fail to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Den Lam and Danny Sing allegedly paid Global Staffing employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing’s client, to conceal the income and wages from the IRS. The criminal activities allegedly occurred between 2013 and 2020. Sing also was charged with allegedly providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing’s client, to obtain business for Global Staffing.
Three other individuals were previously prosecuted in this investigation:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore. Holmes also pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from two temporary staffing companies, one of which was Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes awaits sentencing.
- Nari Lam, age 29, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, the owner of Pennsylvania-based temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Madeline Nieves, age 48, of Plains, Pennsylvania, was indicted by a federal grand jury on tax fraud and conspiracy offenses. Nieves allegedly conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with a temporary staffing company, Encore Staffing Solutions LLC (Encore), that she and her coconspirators owned and operated. Encore leased temporary employees to manufacturing businesses throughout Pennsylvania. Nieves also was charged with failing to report Encore employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves further was charged with three counts of tax evasion, for failing to report her own personal income from Encore. Nieves awaits trial.
The cases were investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
The maximum penalty under federal law for each tax offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the commercial bribery offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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