Owner of employee leasing company sentenced for immigration, tax fraud scheme

PHILADELPHIA – The owner of a south Philadelphia employee leasing company was sentenced Thursday to 30 months in prison for schemes to defraud the United States. The sentencing follows an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Kim Meas, 60, a native of Cambodia, pleaded guilty November 24, 2014, to two counts of conspiracy to commit an offense against the United States, two counts of transporting illegal aliens and two counts of failure to collect and pay federal income and employment taxes. In addition to the prison term, U.S. District Court Judge Jan E. Dubois ordered restitution to the IRS in the amount of $1.7 million during three years of supervised release, a $600 special assessment, and $23 million in forfeiture.

Meas was the managing director of LS Services Corporation, an employee leasing company based in south Philadelphia, when he negotiated labor leasing contracts with various companies throughout the greater Delaware Valley that leased temporary workers. Meas also established approximately 14 shell companies to create the illusion that the workers leased to other companies were employees of the shell corporations. As such, the shell corporations would be responsible for collecting and paying employment and income taxes for the employees. Meas attempted make it impossible for the IRS to determine the identity of the employer of the illegal aliens, as well as the amount of employment and income taxes that the employer of the illegal aliens was required to pay to the Federal Treasury. Meas’ company also transported the illegal aliens, free of charge, to various work locations in company vehicles. The companies that leased employees from Meas did not withhold federal income taxes on the wages paid to the employees, nor did these companies collect and pay to the IRS, employment taxes on the income earned by the workers. Meas had two co-conspirators, Ken Sem and Vivi Fnu, who previously pleaded guilty. 

The case was prosecuted by Assistant U.S. Attorney Floyd J. Miller.