Ephantus Mwangi, a Missouri man, is behind bars and facing a maximum of five years in prison for his alleged role in a massive employment tax scheme.
The 46-year-old Mwangi, of Loch Lloyd, Missouri, made his initial appearance yesterday on an indictment returned by a federal grand jury in Kansas City, Kansas, in December 2023.
According to the indictment, Mwangi allegedly withheld federal income and Social Security and Medicare taxes from the wages of True Payments Solutions Inc. (TPS) employees for six quarters in 2017 and 2018. However, he did not pay those withholdings to the IRS, as required by law, resulting in a tax loss of approximately $337,350.
True Payments Solutions Inc. (TPS) is a corporation based in Kansas, and Mwangi allegedly owned and operated the company at the time of the alleged crime. If convicted, Mwangi faces a maximum penalty of five years in prison for each of the six employment tax counts.
In addition to prison time, Mwangi also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the IRS Criminal Investigation and is being prosecuted by Trial Attorney J. Parker Gochenour of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan Huschka for the District of Kansas.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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