Crime & Safety
KOP Man, Local Business Owner, Pleads Guilty Of $474K Tax Fraud
The owner of a local labor leasing firm did not report hundreds of thousands in taxable income, the IRS said.
KING OF PRUSSIA, PA — A King of Prussia man and local business owner pleaded guilty on Thursday after not reporting more than $474,000 in taxable income on his tax returns, according to the Internal Revenue Service.
Charlie Kien, 45, previously the owner of labor leasing company CK's Business Services, admitted to charges of filing a false tax return and failure to collect, account for, and pay over employment taxes.
As owner CK's, Kien provided temporary employees to multiple companies, including Flag Zone and Elwyn Corporation, the IRS said.
Find out what's happening in Norristownfor free with the latest updates from Patch.
Kien did not report $474,317 in income made from those contracts, according to officials. The total tax loss to the government was $147,665.
Kien also withheld $41,404 in over employment taxes.
Find out what's happening in Norristownfor free with the latest updates from Patch.
The IRS said that Kien's actions harmed the Medicare and Social Security benefits of his employees.
Kien faces a maximum sentence of eight years behind bars and three years of probation, as well as $1,416,041 in restitution.
Sentencing is set for Feb. 21, 2020 before U.S. District Judge Mark A. Kearney.
Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.
