ALLSTAFF HR "Pyramiding" the 941 Taxes

This couldn't possibly be legal. Allstaff's CFO, Greg Medley, was questioned directly by the Honorable Terrance Croft, the Arbitrator about the growing 941 tax deficit. Mr. Medley's answer was "you are borrowing more and more". Click here and scroll to page 109

MR. CROFT: How does the tax liability increase over time if the number of employees decreases?

THE WITNESS: Because there could be moneys used for legal or for any number of expenses that even though the employee count is shrinking, you are borrowing more and more against that. So you get a little further and further out.

MR. CROFT: So if you use it to pay other bills instead of to pay that
in which it was withheld for, that would increase the deficit.

THE WITNESS: Right. It would take you longer to catch up the prior
quarter.

Seems pretty clear cut. Allstaff had to borrow close to $700, 000 from Total HR clients in order to pay their own trailing liabilities and current legal costs.

According to the IRS, this is a fraudulent practice and is defined below as:

Pyramiding. "Pyramiding" of employment taxes is a fraudulent practice where a business withholds taxes from its employees but intentionally fails to remit them to the IRS. An often cause is a lack of profit or capital for operating costs, so the business owner uses the trust funds to pay other liabilities. The quarterly employment tax liabilities accumulate (or "pyramid") until the employer has little hope of catching up. Businesses involved in pyramiding frequently shut down or file for bankruptcy and then start a new business under a different name starting the cycle over.

ALLSTAFF fired Greg Medley on October 22, 2009. When asked if he felt like the 941 tax shortage was the reason he was let go, Mr. Medley stated "probably". Click here and scroll to page 53.

Another Lie from Jim Beesley "Pete Anderson Coverup"

We were wondering... What happened to Pete Anderson? Jim Beesley, when questioned about Pete Anderson during his cross examination in the arbitration between Total Hr Solutions and ALLSTAFF, Jim Beesley lies under oath.

The Georgia Secretary of State list Pete Anderson as the CEO in July, 2009. Jim Beesley's testimony below: Click here to see complete testimony.

Q. And you act as the CEO of Allstaff HR Group?
A. Yes.
Q. Okay. And Mr. Anderson has no title or responsibility with Allstaff?
A. The only title that he has is he is the insurance broker for some of the insurance products.
Q. Okay.
A. So I guess you could say a broker.

If Pete Anderson is only a broker, then why is he listed as CEO with the Secretary of State? More importantly, why did Jim Beesley lie and coverup Mr. Anderson's involvement with Allstaff HR? Where is Pete Anderson now?

According to Jim Beesley, Pete Anderson recruited him to work with Creative Risk, a Mirabilis owned company to handle workers compensation underwriting and risk for PEO clients.

More to come about Pete Anderson, Creative Risk and Workers Compensation...

Pete Anderson "Just a Broker", Allstaff HR Co-CEO, Can't Sleep at Night worried about 941 Taxes

Pete Anderson, former executive with Mirabilis Ventures and, current CEO of ALLSTAFF, stated "he couldn't sleep at night; he was worried about the taxes". Click Here to read testimony

Allstaff's CFO, Greg Medley's, sworn testimony in the arbitration, Mr. Medley testified under Cross Examination by Andrew Beal, attorney for Total HR Solutions:

Q. So Anderson told you he couldn't sleep at night because of the tax liabilities on one of the Allstaff companies, is that right?

A. He didn't tell me specifically. He told it, I believe he was speaking to Jim, that he can't sleep at night because we've got to get the IRS caught up.

Q. So he knew that that -- did you take from that, that that tax problem had been going on for a long time?

A. I understood that to mean that, yes, it was a problem that they knew about.

ALLSTAFF fired Greg Medley on October 22, 2009. When asked if he felt like the 941 tax shortage was the reason he was let go, Mr. Medley stated "probably". Click here and scroll to page 53.

It has been said "if you live in a glass house, don't throw rocks".

ALLSTAFF HR is currently experiencing trouble with state tax liens, tax liability lawsuits and a huge judgment against their dishonest practices. Yet in the midst of their troubles, Allstaff HR accused Total HR of the very same thing. The problem is, there were no tax liens, no lawsuits and no judgments against Total HR at the time of the merger.

In an effort to spin and deceive, Jim Beesley of Allstaff HR tried to publicly defame the owners of Total HR Solutions, the company he claimed to "try and rescue" by making allegations they were not paying their insurance or taxes.

This statement was made in a letter to the Total HR clients on May 15, 2009 while his own company was not paying all of their fiduciary obligations.

The owners of Total HR carried the case to a verdict and, along the way, proved Beesley's allegation false, uncovered fiduciary fraud and, won a substantial court ruling. Moreover, after 11 days of testimony, all counter claims made by ALLSTAFF were dismissed with prejudice.

This means Allstaff HR once again has incurred substantial judgments against them while claiming to be the so called "white horse". It appears that ALLSTAFF used the Mirabilis tactic of diverting attention from their own financial troubles at the expense of the former owners of companies they "tried to rescue".

ALLSTAFF loses Big in Magistrate Court

In the hearing on November 4, 2010, ALLSTAFF tried to circumvent the court system with more stall tactics and legal nonsense.

Allstaff learned quickly that their old Mirabilis tactics used to exploit loopholes in Florida law won't work with the Gwinnett County Magistrate Courts. " This could have the appearance of stall or delay tactics" said Magistrate Court Judge Michelle Knight. In an unprecedented display of justice, the court removed the counter claim brough against Morgan Sourcing and ordered ALLSTAFF to trial at the next available court date.

This trial will have much public attention considering the local Gwinnett County Court System could determine ALLSTAFF's and even their clients fate. Look for ALLSTAFF to settle this case with Morgan Sourcing to suppress the tsunami of tax troubles headed their way.

This would be a good time to make sure ALLSTAFF hasn't "misplaced" your tax or benefit money.

Judge Rules in Tax Fraud Case - Allstaff HR

After failing to appear at the first hearing the Gwinnett County Court orders new trial date on Thursday, November 4th at 1:30. ALLSTAFF HR is on trial for failing to pay 941 tax money on behalf of former client Morgan Sourcing, the company spearheading the effort to expose Allstaff HR's shady practices.

ALLSTAFF appears desperate to avoid a ruling in this case and has resorted to postponements, suppressed evidence and harassment of former clients such as Morgan Sourcing one of the many companies affected by the coverup. Allstaff HR has gone as far as to file a $100, 000 law suite, both a delay tactic and legal badgering.

Expect the court to throw the book at ALLSTAFF for taking 941 tax dollars from Total HR clients to pay ALLSTAFF's back 2008 taxes (page 20). Current Clients should expect ALLSTAFF's usual Blame Game song and dance.

Rencently, my company was contacted by a PEO located in Alpharetta, GA offering to do a comparrison proposal between my current PEO, Allstaff and them. They were very confident that I was paying way too much for my workers Compensation coverage as well as benefits and other administration cost. I was shocked and outraged at what Allstaff was charging for workers compensation. Further, I was told that Allstaff makes a large profit off of the workers compensation as well as state unemployment insurance, benefits and other lines of coverage. I am outraged by this ESPECIALLY in this economy!

If you are currently a client of Allstaff, I suggest you ask for a complete breakdown and do yourself a favor SHOP. At my current PEO's request, I am not able at this time to reveal the name. Once I have permission, I will post with contact information.