U.S. Attorney's Office - District of Oregon

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News Release

Oregon Business Owner Sentenced To Federal Prison For Employment Tax Crimes (Photo) - 02/26/26

PORTLAND, Ore.—An owner and president of a collection of healthcare staffing companies was sentenced to federal prison today for willfully failing to pay over employment taxes to the IRS on behalf of the companies he owned and operated.

 

Jeffrey A. Kruse, 56, was sentenced to 18 months in federal prison and three years of supervised release. He was also ordered to pay over $2.8 million in restitution.

 

According to court documents, Kruse was the founder, owner, and president of a collection of healthcare staffing companies that provided temporary staffing of medical and healthcare workers in Arizona, California, Colorado, Oregon, and Washington. Kruse was in charge of payroll for the businesses and responsible for collecting and accounting for and paying over to the IRS on a periodic basis employment taxes for the businesses’ employees. Kruse falsely underreported and underpaid his employment tax obligations by creating two sets of tax forms for his employees – a false set of tax forms that he sent to the government that underreported his employees’ compensation and the employment tax due, and an accurate set of tax forms that Kruse sent his employees for use in reporting their own tax obligations.

 

Kruse’s conduct caused a total tax loss of over $3.6 million.

 

On June 20, 2025, Kruse was charged by information with one count of willful failure to collect, account for, and pay over trust fund taxes.

 

On August 6, 2025, Kruse pleaded guilty to count one of the information.

 

IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Andrew T. Ho prosecuted the case.

 

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Attached Media Files: PDF Release,

Oregon Business Owner Sentenced To Federal Prison For Employment Tax Crimes (Photo) - 02/26/26

PORTLAND, Ore.—An owner and president of a collection of healthcare staffing companies was sentenced to federal prison today for willfully failing to pay over employment taxes to the IRS on behalf of the companies he owned and operated.

 

Jeffrey A. Kruse, 56, was sentenced to 18 months in federal prison and three years of supervised release. He was also ordered to pay over $2.8 million in restitution.

 

According to court documents, Kruse was the founder, owner, and president of a collection of healthcare staffing companies that provided temporary staffing of medical and healthcare workers in Arizona, California, Colorado, Oregon, and Washington. Kruse was in charge of payroll for the businesses and responsible for collecting and accounting for and paying over to the IRS on a periodic basis employment taxes for the businesses’ employees. Kruse falsely underreported and underpaid his employment tax obligations by creating two sets of tax forms for his employees – a false set of tax forms that he sent to the government that underreported his employees’ compensation and the employment tax due, and an accurate set of tax forms that Kruse sent his employees for use in reporting their own tax obligations.

 

Kruse’s conduct caused a total tax loss of over $3.6 million.

 

On June 20, 2025, Kruse was charged by information with one count of willful failure to collect, account for, and pay over trust fund taxes.

 

On August 6, 2025, Kruse pleaded guilty to count one of the information.

 

IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Andrew T. Ho prosecuted the case.

 

# # #

Attached Media Files: PDF Release,