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Two Sentenced In Federal Tax Fraud Case

By Roger Cornish (WICHITA, Kan.)

Two of the founders of PBS Global, Inc., have been sentenced to federal prison for defrauding the company's customers in Kansas and across the nation.                  

Forty-eight year-old John Persaud of Boca Raton, Florida was sentenced to 90 months in federal prison.  

Forty-eight year-old Richard Hagan of Melbourne, Florida., was sentenced to 68 months.                     

Persaud and Hagan each pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. 

The two men admitted that in the spring of 2003 they formed Prudential Business Services, Inc., which later became known as PBS Global, Inc., with Hagan serving as chief executive officer and Persaud working as director of sales.

Advertising via notices faxed to small businesses across the nation, the company offered to assist owners in finding buyers for their small businesses.

Persaud recruited and trained sales force members and provided them with sales materials that contained false and fraudulent claims.

This included false claims that PBS had a successful track record over a period of years, that PBS made money only when a customer's business was successfully sold, and that PBS sales force members did not depend on commissions for income.

From July 8, 2003, through December 31, 2005, PBS paid a total of more than $4 million to Persaud.

Hagan was paid more than $1 million during 2003 through 2005.