CONCORD – A Nashua man who ran a local temp agency has been charged with tax evasion and mail fraud, federal prosecutors announced Thursday.

Monahan was indict­ed Wednesday in U.S. Dis­trict Court on six counts of tax evasion, alleging he failed to pay federal income, Social Security and Medi­care taxes on more than $13 million in wages the com­pany paid to employees.

The company put money from client firms into bank accounts, using a separate account for each company, and paid its temps in cash, the indictment charges.

In 2000, the company paid $69,794 in taxes on $226,822 reported wages, but it failed to report an additional $1.9 million in wages, the indictment alleges.

Prosecutors also charge that Monahan and his partner filed false information with the company’s workers’ compensation insurance carriers from 2000-04.

The indictment includes three counts of mail fraud, alleging Monahan and his partner reduced premiums by underreporting the number of employees in the firms, the total payroll and also lying about the type of work employees did.

Tax evasion carries a maximum sentence of five years in prison and a $250,000 fine, while mail fraud is punishable by up to 20 years in prison, and a $250,000 fine or twice the monetary gain created by the offense, whichever is greater.

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