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South Jersey Employment Agency Owner Sentenced to 18 Months for Tax Evasion

South Jersey Times (09/28/12) Jessica Beym

Vanna Kem, the owner and operator of a New Jersey-based temporary staffing firm, has been sentenced to 18 months in prison for evading employment taxes for the business. Kem previously pleaded guilty to one count of tax evasion. Authorities said that despite being the true owner of Tri State Labor Services, Kem incorporated the business and maintained the corporate bank account in the name of a nominee. From the first quarter of 2006 through the last quarter of 2008, Kem paid Tri State employees more than $1 million in cash wages without withholding employment taxes. She also failed to file IRS Form 941—Employer’s Quarterly Federal Tax Returns—in which she was required to report the wages paid to her employees.