Donate to the Salvation Army Red Kettle Campaign

WREG asks questions after Memphis couple indicted for millions of dollars in federal employment tax fraud

MEMPHIS, Tenn. -- A Memphis couple faces federal charges. Prosecutors said they took taxes out of worker's checks then used the money themselves instead of passing it on to the government. The government puts that number at $2.8 million.

According to the Department of Justice Mark Stinson and his wife Jayton Stinson were arrested Tuesday.

"They're charged with trying to defraud the United States with 5 counts of failing to truthfully account for payroll taxes, " explained WREG's Shay Arthur to a man at Jayton Stinson's business.

"That's beyond me and I don't even want to think about it," said the man as he shut and locked the door.

On Wednesday before WREG had the door shut on us at Connex Staffing Services off South Mendenhall in Parkway Village, WREG's asked a man there about the arrest of owner Jayton Stinson.

"OK well I'm not familiar, I'm not sure, she's not in, she's not available," said the man.

"Do you know anything about her being arrested?" asked WREG's Shay Arthur.

"No I don't," he replied.

According to the DOJ, the Stinsons are charged with conspiring to defraud the United States and failing to pay payroll taxes. Mark faces additional charges.

According to the indictment, the Stinson's operated a temporary staffing company for 10 years.

The Stinson's allegedly failed to pay more than $2.8 million in payroll taxes, despite withholding those taxes from the wages of the staffing company workers.

They're accused of using their extra cash to purchase a Mercedes-Benz and Cadillac Escalade, make monthly payments for their personal mortgage and make private school tuition payments for their children.

"This is an indictment, an indictment consists of allegations and they're just that," said Jayton Stinson's attorney Andre Wharton.

Wharton said his client is innocent and he said she's been a key member of the Memphis business community for more than a decade.

"She has hundreds of employees that she employs throughout this community and she will continue to operate in that fashion and so this will have no impact on her business, but we do intend to respond appropriately to these allegations and this indictment."

The couple is no longer in custody and is expected to be arraigned next week.