Memphis, TN – A shocking tale of deceit and corruption has come to a close as two former Memphis staffing company owners were sentenced to prison for payroll tax fraud.
Mark Stinson, a convicted mastermind behind the payroll tax scheme, was sentenced to 75 months in prison for conspiring to defraud the United States, failing to pay over payroll taxes, filing false tax documents, theft of government funds, and aggravated identity theft.
His wife, Jayton Stinson, previously pleaded guilty to conspiring to defraud the United States, and was sentenced to one year in prison.
The shocking scheme, which lasted from 2005 through 2015, saw the Stinsons operate a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere.
The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
However, the Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns.
As the scheme unraveled, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing and Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services, Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies.
Defendant: Mark Stinson
Criminal Charges: Conspiring to defraud the United States, failing to pay over payroll taxes, filing false tax documents, theft of government funds, and aggravated identity theft
City and State: Memphis, TN
Exact Date: Not specified
Sentence: 75 months in prison
Dollar Amounts: $2.8 million
According to court documents and trial testimony, the Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments, and private school tuition for their children.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
In addition to the terms of imprisonment, U.S. District Judge John T. Fowlkes, Jr., ordered the Stinsons to serve terms of supervised release and to pay restitution of $2.8 million.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney D. Michael Dunavant commended special agents of IRS-Criminal Investigation, who investigated this case, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who prosecuted this case.
Mark Stinson’s 75-month prison sentence is a stark reminder of the consequences of committing payroll tax fraud.
The Stinsons’ case serves as a warning to others who may be tempted to cheat the system and evade their tax obligations.
Payroll tax fraud is a serious offense that can have devastating consequences for individuals and businesses alike.
The IRS will continue to crack down on those who attempt to cheat the system and will pursue vigorous prosecution of those who engage in payroll tax fraud.
Defendant’s Name: Mark Stinson
Relationship to Defendant: Former business partner
Quote: ‘The Stinsons’ actions were a brazen attempt to cheat the system and evade their tax obligations.’
Category: White Collar Crime
Tags: payroll tax fraud, Memphis, TN, Mark Stinson, Jayton Stinson
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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