PHILADELPHIA, PA (Nov. 1, 2019)--On October 31, 2019, CHARLIE KIEN (KIEN), 45, of King of Prussia, PA, pled guilty to filing a false tax return, as well as failure to collect, account for, and pay over employment taxes.
KIEN owned CK’S Business Services, LLC (“CK’S). CK’S was a labor leasing business that provided temporary employees to Flag Zone, LLC and Elywn Corporation. KIEN admitted to not reporting approximately $474,317.14 in taxable income on his 2012 tax return; resulting in a tax loss of approximately $147,665.00. KIEN also failed to withhold and pay over employment taxes totaling approximately $41,404.50 during the same year.
“KIEN had an obligation to his employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “KIEN’S failure to fulfill this obligation, not only affected revenue to the United States government, but it also negatively affected his employees’ Medicare and Social Security benefits.”
KIEN’S Sentencing is scheduled for February 21, 2020, before United States District Judge Mark A. Kearney. KIEN faces a statutory maximum sentence of eight years in prison, followed by three years of supervised release, and restitution in the amount of $1,416,041.88.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Terri Marinari.