Luzerne County Exec Takes Kickbacks in Staffing Scheme

SCRANTON, PA – Jose L. Ortiz, 48, of Drums, Pennsylvania, has been formally charged with conspiracy to commit honest services fraud, the U.S. Attorney’s Office for the Middle District of Pennsylvania announced May 8, 2024. The charges stem from a long-running scheme involving illicit payments accepted while Ortiz served as a manager and director at a Pennsylvania food services company between 2014 and 2021.

According to the indictment, Ortiz and his co-conspirators systematically accepted cash bribes and other valuable consideration from individuals associated with Global Staffing Services, Inc. and Penns Independent Staffing. These two companies leased temporary employees to Ortiz’s employer. In return for the kickbacks, Ortiz ensured contracts were awarded and temporary employees were hired from these specific staffing firms. The scale of the operation is staggering: over $18,000,000 was allegedly paid to the two staffing companies, fueling a network of corruption and netting Ortiz approximately $200,000 in personal kickbacks.

Ortiz isn’t operating alone. Six other individuals have already faced justice for their roles in this criminal enterprise. Mark Holmes, 66, of Hughes Springs, Texas, pleaded guilty to accepting approximately $400,000 in bribes as the General Manager of the food services company. His employer ultimately paid approximately $7,800,000 to Global Staffing Services, Inc. and Penns Independent Staffing. Holmes also admitted to failing to remit approximately $135,000 in employment taxes related to Encore Staffing Solutions LLC, a separate staffing company he owned. He awaits sentencing.

The web of deceit extends further. Madeline Nieves, 49, of Plains, Pennsylvania, received a 15-month prison sentence for a tax fraud conspiracy connected to Encore Staffing Solutions LLC. She failed to report employee wages, resulting in approximately $67,000 in unpaid employment taxes, and also failed to report her own income. Nari Lam, 31, of Wilmington, Delaware, received three years of probation for failing to remit approximately $300,000 in employment taxes for Penns Independent Staffing. Danny Sing, 60, of Philadelphia, Pennsylvania, pleaded guilty to tax evasion totaling approximately $1,600,000 in wages paid by Global Staffing Services, Inc., and failing to remit $1,360,000 in federal employment taxes. Sing also admitted to providing over $400,000 in bribes to secure business for Global Staffing Services, Inc. He, too, awaits sentencing.

Rounding out the convictions, Den Lam, 49, of Philadelphia, Pennsylvania, is charged in an information alleging conspiracy to evade federal income taxes for approximately $1,600,000 in wages. The Department of Justice is sending a clear message: such widespread corruption and tax evasion will not be tolerated.

This investigation highlights a systemic failure of oversight and accountability. The Grimy Times will continue to follow this case and report on any further developments, exposing the rot that festers beneath the surface of seemingly legitimate businesses. The U.S. Attorney’s Office has not released details regarding potential asset forfeiture or further charges.