The former CFO of Equinox Home Care, a home healthcare staffing agency based in Stratford, Conn., was sentenced Aug. 10 for a tax offense, the U.S. Justice Department said.
Pamela Smith, 72, was sentenced to two years of probation for aiding in the preparation of a false tax return. U.S. District Judge Victor Bolden also ordered Ms. Smith to perform 100 hours of community service.
Ms. Smith, who was the CFO of the Connecticut staffing company from about 2009 to 2018, pleaded guilty to the charge in January.
The healthcare staffing firm was established as a partnership by Theresa Foreman and another individual. According to prosecutors, Ms. Smith and the staffing firm's payroll manager helped Ms. Foreman receive money from Equinox Home Care in a manner that hid that she was the recipient of the payments.
Starting in 2012, Equinox Home Care's payroll included checks and payments to "ghost employees" who didn't work at the firm, according to prosecutors. Those funds instead went to Ms. Foreman.
As CFO of the company, Ms. Smith knew about the paychecks going to ghost employees, prosecutors said.
According to the lawsuit, Ms. Smith also was involved in assisting Ms. Foreman in a scheme that involved bonus checks from the firm to about 30 actual employees. Those employees cashed the checks and gave the money to Ms. Foreman.
Ms. Smith also worked with the individual who prepared the tax return for the firm and for Ms. Foreman. Prosecutors said Ms. Smith failed to inform the return preparer about the funds Ms. Foreman received through the various schemes. About $600,000 of the funds were not reported on the 2014 tax return, according to prosecutors.
Ms. Foreman pleaded guilty to one count of tax evasion and was sentenced to 12 months and one day in prison in January 2020.