Thomas Stafford, the CEO and President of Information Systems Staffing, Inc. (ISS), has been charged with tax and bankruptcy fraud. The charges, announced by United States Attorney David Metcalf, allege that Stafford, a 76-year-old resident of Philadelphia, Pennsylvania, failed to remit over two million dollars in trust fund taxes. These taxes, from the first quarter of 2019 to the fourth quarter of 2024, include Social Security, Medicare, and federal income taxes that employers are required to withhold from their employees’ paychecks and submit to the Internal Revenue Service (IRS).
According to the indictment, Stafford was responsible for managing ISS's finances and making decisions regarding their payment of trust fund taxes. It is alleged that he used the company's accounts for personal expenses and decided on expense priorities, including whether to engage external entities to manage the company’s tax obligations.
In addition to the tax-related charges, Stafford is accused of committing bankruptcy fraud linked to a Chapter 13 bankruptcy case filed in 2023 in the Eastern District of Pennsylvania. The indictment claims that Stafford proposed a payment plan to his creditors that misrepresented his income and concealed control over properties held in others' names to reduce his financial obligations.
If Stafford is convicted, he could face up to 130 years in prison. The investigation was carried out by the Internal Revenue Service Criminal Investigation, and the prosecution is led by Assistant United States Attorney Francis A. Weber and Special Assistant United States Attorney Hannah J. McCollum.
It is important to note that an indictment is merely an accusation, and Stafford is presumed innocent until proven guilty.