Massachusetts employment agency owner sentenced to jail for tax and fraud


December 14, 2021

The operator of employment agencies based in Worcester, Mass., Was sentenced on Dec. 13 to 25 months in prison and three years of supervised release for federal tax charges and fraud.

Tam Vuong, 46, was also ordered to pay restitution and confiscation in an amount to be determined later. He was arrested in 2019 and pleaded guilty in August 2021 to 14 counts of wire fraud and four counts of non-payment of taxes.

Vuong oversaw employment agencies Prime Labor LLC and UT Services Inc. Each agency paid a few employees by check but paid most of the employees in cash, according to the Massachusetts District Attorney’s Office. Each company failed to report or pay taxes on wages paid in cash, which Vuong fraudulently concealed in income tax returns and workers’ compensation insurance audits. Vuong hid millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, over $ 30 million worth of checks from Prime Labor client companies were cashed at a check cashing business in Worcester; Prime Labor paid millions of those dollars in wages in cash and then failed to report those wages to the IRS or its insurer, according to the prosecutor’s office.

Additionally, while overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance company that the company only had one employee and an annual payroll of only $ 50,000, so that in reality UT Services had dozens of employees and a considerable number of employees. a higher wage bill. According to the prosecutor’s office, UT Services disseminated false insurance certificates to several clients and failed to notify clients of the cancellation of its workers’ compensation policy.

Vuong transferred its activities from Prime Labor to UT Services after the execution of federal search warrants in November 2017.

In January, Julio Lopez, a former Prime Labor and UT Services employee, pleaded guilty to cable fraud and tax charges and is currently expected to be sentenced on December 15. Linda Le, a former UT Services employee, was sentenced in May. to two years probation after pleading guilty to perjury for giving false testimony before a federal grand jury.