Two corporate executives face up to five years in federal prison after failing to pay more than $600,000 in taxes.
Daniel Hovis, 60, and Janice Hensley, 63, pleaded guilty to failure to pay trust fund taxes to the IRS for their employees Tuesday before U.S. District Judge Thomas Johnston.
Hovis is the president of Career Search One Inc. and Hensley is the corporation's vice president. Career Search One Inc. specialized in providing employees to clients for a fee, according to a statement by U.S. Attorney Booth Goodwin.
The corporation's primary bookkeeping offices were based in Charleston and Wheeling. Hovis and Hensley both worked out of the Charleston office.
Hovis and Hensley failed to report and pay more than $630,158 in trust fund taxes on behalf of employees at Career Search One Inc. from 2004 to 2010.
They instead used the money to pay personal expenses. Both knew that corporate funds should have been used to pay the taxes, Goodwin's statement said. In addition to prison time, Hovis and Hensley also face a $250,000 fine. Sentencing is Sept. 4.