Daniel Hovis, Tax Evasion, West Virginia 2023

A shocking case of corporate greed has come to light in West Virginia, where two top executives of a staffing agency have been sentenced to federal prison for their role in a $630,000 tax evasion scheme.

Daniel Hovis, 60, owner and president of Career Search One, Inc., was sentenced to two years in prison, while Janice Hensley, 62, vice president and director of counseling, received a one year and eight months prison sentence.

The sentencing was handed down by United States District Judge Thomas E. Johnston in Charleston, West Virginia, on an unknown date. Hovis and Hensley were found guilty of failing to pay more than $630,000 in federal employment taxes to the Internal Revenue Service (IRS).

According to court documents, Hovis and Hensley withheld trust fund taxes from employees’ paychecks from 2004 through the first quarter of 2010, but failed to report or pay over the funds to the IRS. The trust fund taxes, which include federal income and FICA taxes, were used for personal expenses instead of being paid to the IRS.

The Internal Revenue Service’s Criminal Investigative Division conducted the investigation, with Assistant United States Attorney Meredith George Thomas handling the prosecution. Hovis and Hensley were each ordered to pay restitution in the amount of $630,158.94.

The case highlights the importance of corporate accountability and the consequences of failing to comply with tax laws. As one official noted, ‘Tax evasion is a serious crime that can have severe consequences for individuals and businesses alike.’

Career Search One, Inc., a staffing agency based in Charleston and Wheeling, West Virginia, specialized in providing employees to client businesses for a fee. The company’s primary bookkeeping offices were located in Charleston.

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