Drums Man Charged in $18M Bribery Scheme

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose L. Ortiz, a 48-year-old man from Drums, Pennsylvania, was charged with conspiring to commit honest services fraud in a criminal Information filed on May 8, 2024.

According to United States Attorney Gerard M. Karam, the Information alleges that Ortiz, a former manager and director at a Pennsylvania food services company, accepted cash bribes and other things of value from coconspirators who owned and operated Global Staffing Services, Inc. and Penns Independent Staffing.

Ortiz and his coconspirators allegedly entered contracts with and hired the temporary employees of the two staffing companies, which leased workers to Ortiz’s company. The scheme allegedly netted over $18,000,000 in payments to the two staffing companies, with Ortiz receiving approximately $200,000 in kickbacks.

Ortiz is not the only one to face charges in this investigation. Six other individuals have been previously prosecuted, including Mark Holmes, a 66-year-old man from Hughes Springs, Texas, who pleaded guilty to accepting $400,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing.

Madeline Nieves, a 49-year-old woman from Plains, Pennsylvania, pleaded guilty to a tax fraud conspiracy, failing to report $67,000 in employment taxes owed by Encore Staffing Solutions LLC, a company she owned and operated. Nieves was sentenced to 15 months of imprisonment.

Danny Sing, a 60-year-old man from Philadelphia, Pennsylvania, pleaded guilty to conspiring to evade federal income taxes and failing to withhold and remit $1,360,000 in federal employment taxes to the IRS. Sing also pleaded guilty to providing over $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client. Sing awaits sentencing.

Den Lam, a 49-year-old man from Philadelphia, Pennsylvania, was charged with conspiring to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees.

Nari Lam, a 31-year-old woman from Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS, failing to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam was sentenced to three years of probation.