Joseph Patrick Balano, Employment Tax Scheme, Missouri 2015

Kansas City, Missouri – In a shocking case of employment tax evasion, Joseph Patrick Balano, a 54-year-old business owner from Kansas City, Missouri, has been sentenced to two years and three months in federal prison without parole for a scheme to defraud the government by failing to pay over $493,000 in employment taxes.

According to the United States Attorney for the Western District of Missouri, Tammy Dickinson, Balano, who pleaded guilty on August 3, 2015, withheld employment taxes from his employees but kept most of those taxes for his own personal use. The total amount withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano failed to pay the employer portion of the taxes to the IRS, in the amount of $232,672.

The total loss to the government was $493,443. Balano used the money to finance his own personal expenses and expenses for family members, including gambling, mortgage payments for his residence and lake house, and car payments.

Balano was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Missouri, and Kansas City, Missouri. Two earlier businesses, Labor Connections and Labor Connections II, were dissolved in 2006, ostensibly due to employment tax issues.

Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location. Balano admitted to withholding employment taxes from his employees but keeping most of those taxes for his own personal use.

The case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown and investigated by IRS-Criminal Investigation. Balano has been in federal custody since his pretrial release was revoked in June 2014 after he committed two crimes involving thefts.

Joseph Patrick Balano’s sentence serves as a stark reminder of the consequences of employment tax evasion. His actions not only cost the government $493,443 but also undermined the trust of his employees and the community.

Related Federal Cases