KOP Man, Local Business Owner, Sentenced For $474K Tax Fraud

KING OF PRUSSIA, PA — A King of Prussia man and local business owner has been sentenced to prison for significant tax fraud.

Charlie Kien, 45, was sentenced to six months in prison and three years of probation last week.

He had previously pleaded guilty to charges of filing a false tax return and failure to collect, account for, and pay over employment taxes back in Nov. 2019.

As owner CK's Business Services, Kien provided temporary employees to multiple companies, including Flag Zone and Elwyn Corporation, the IRS said.

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.

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.