Kenyan‑American entrepreneur sentenced to 51 months for $1.5 million employment tax fraud

Ephantus Mwangi, owner of two Kansas payment‑processing firms, received a 51‑month prison term, three years’ probation, $1.5 million restitution and a $150,000 fine after failing to remit employee taxes.

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A federal judge sentenced Kenyan‑American businessman Ephantus Mwangi to 51 months in prison for willfully failing to pay employment taxes owed by his companies.

In addition to the prison term, Mwangi was ordered to serve three years of probation, pay $1.5 million in restitution to the United States, and a $150,000 fine.

Mwangi owned True Payment Solutions and True POS Solutions, Inc., both based in Kansas and providing credit‑card processing services and card readers to merchants.

Prosecutors allege he withheld $331,404.33 in employee payroll taxes and failed to remit other employment taxes due from True Payment Solutions.

From 2016 to 2019, Mwangi transferred more than $1.5 million from the corporate accounts of both firms into his personal accounts, according to court documents.

He used part of the misappropriated funds for luxury vehicle loan payments, an $13,000‑per‑month mansion lease in San Antonio, and private‑school tuition for his children.

Between 2016 and 2019, Mwangi also sent $763,000 to a Kenyan entity, TRUE PAYMENT SOLUTIONS, EA LTD, further depleting the companies’ assets.

The total tax loss to the U.S. government from Mwangi’s actions exceeded $1.5 million.

Mwangi missed his original sentencing date on April 27, failed to appear in court, and was later arrested during a traffic stop after providing a false name and birth date.