U.S. Attorney’s Office – District of Kansas Joins DOJ Fraud Division, IRS, and IRS-CI in National Tax Enforcement Surge Exposing More than $490M in Tax Fraud; Kansas Business[...]

KANSAS CITY - The District of Kansas today announced that on October 5, 2026, Ephantus Mwangi, a Kenyan national and Missouri businessman, was sentenced to 51 months in prison for willfully failing to pay over employment taxes to the IRS on behalf of the company he owned and operated. The sentencing was part of nationwide enforcement actions led by the Justice Department's National Fraud Enforcement Division, Internal Revenue Service, and Internal Revenue Service Criminal Investigation targeting tax fraud and related offenses. The District of Kansas was a key participant in this surge effort.

Between early September and today, federal prosecutors across the country facilitated fraud enforcement actions spanning more than 76 criminal defendants, reaching approximately $490,000,000 in intended loss to American taxpayers.

"For years Mr. Mwangi took money that was supposed to go to the IRS for his employees' tax withholdings and instead spent it on a flashy and extravagant lifestyle of luxury cars, mansions, and gambling. Now Mr. Mwangi has gone from staying in a big house to a four-year-stay in 'the Big House,'" said U.S. Attorney Ryan A. Kriegshauser.

"The 51-month prison sentence should serve as a reminder of how serious of an offense it is to fail to pay employment taxes," said IRS-Criminal Investigation Kansas City Special Agent in Charge William Steenson. "Those who choose to intentionally shirk this responsibility should worry they will be investigated, prosecuted, and imprisoned."

According to documents and statements made in court, Mwangi, 48, a resident of Missouri, owned and operated True Payment Solutions, Inc., a Kansas-based business that sold credit-card processing services and card readers to merchants. Mwangi also owned True POS Solutions, Inc., a separate business that offered similar services.

From at least the third quarter of 2017 through at least the fourth quarter of 2018, however, Mwangi withheld employment taxes from his employees' wages, but he willfully failed to pay over these taxes to the IRS or file employment tax returns. In total, Mwangi withheld $331,404.33 in taxes from his employees' wages that he did not pay over to the IRS.

Mwangi also willfully failed to pay over employment taxes due from True Payment Solutions. Instead, from 2016 to 2019, Mwangi transferred more than $1.5 million from the corporate bank accounts of True Payment Solutions and True POS Solutions Inc. to his personal bank accounts. During this time, he spent more than $200,000 on loan payments for various luxury vehicles, including a Hummer H2, a Cadillac Escalade, two Range Rovers, two Mercedes, and a Lexus. He also used these funds to rent an 11,000 sq. ft. mansion as a second home in San Antonio for $13,000 per month and to pay for private school tuition for his children. Additionally, between 2016 and 2019, Mwangi transferred a total of $763,000 in funds to "TRUE PAYMENT SOLUTIONS, EA LTD," in Kenya, Africa.

In total, Mwangi caused a tax loss to the U.S. government exceeding $1.5 million.

Mwangi was previously scheduled to be sentenced on April 27, 2026. He failed to appear in court on this date and remained a fugitive from justice for approximately six weeks, until he was arrested during a traffic stop. During the stop, Mwangi falsely identified himself to law enforcement by providing a false name and birth date.

In addition to 51 months' imprisonment, U.S. District Judge Daniel D. Crabtree ordered Mwangi to serve three years of supervised release, pay approximately $1.5 million in restitution to the United States, and pay a fine of $150,000.

Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney Ryan A. Kriegshauser for the District of Kansas made the announcement.

IRS Criminal Investigation investigated the case with the assistance of the U.S. Marshals Service and the Texas State Police.

Trial Attorney J. Parker Gochenour of the National Fraud Enforcement Division's Tax Section and Assistant U.S. Attorney Ryan J. Huschka of the District of Kansas prosecuted the case.

This press release details one way in which this office has contributed to ensuring that all Americans pay their fair share. To see the successes of other offices, please see this press release: "DOJ's Fraud Division, IRS, and IRS-CI Expose More than $490M in Tax Fraud in National Tax Enforcement Surge."

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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