Providence Woman Headed To Prison For Payroll Scheme

BOSTON, MA — A Providence woman is headed to prison for her role in a payroll scheme in which her temp agency evaded paying nearly $2 million in taxes. Souleang Kane, 48, was sentenced in federal court in Boston to two years in prison, three years of supervised release, and ordered to pay restitution. She pleaded guilty in October to 18 counts of willful failure to collect and pay taxes to the IRS and five counts of mail fraud.

Prosecutors said Kane operated a series of temporary employment agencies under the name Expert Staffing, Affordable Staffing and M&K Temp Inc., providing labor for Massachusetts companies in agricultural industries. She failed to report nearly $4.3 million in paid wages to the IRS, evading more than $1.3 million in federal taxes and $431,000 in state taxes.

Kane also "grossly understated" payrolls in dealing with workers’ compensation insurance providers. The workers’ compensation insurance premiums were as a result fraudulently reduced by approximately $165,000 between 2010 and 2015.