Feds indict Massachusetts staffing firm owner on tax, wire fraud charges

Photo by Bill Oxford on Unsplash

Staffing Industry Analysts (SIA) reports that the owner of a staffing firm was indicted for failing to pay taxes.

A former staffing firm owner in Worcester, Massachusetts, was indicted Thursday on federal tax and fraud charges, the US Attorney’s Office for the District of Massachusetts reported.

Tam Vuong, 44, was charged with 14 counts of wire fraud and four counts of failing to pay taxes, according to the US Attorney’s Office.

Vuong’s firms, Prime Labor LLC and UT Services Inc., paid most employees in cash and failed to pay taxes on those cash wages, according to the office. Vuong allegedly hid millions of dollars in cash wages.

The office noted more than $30 million in Prime client company checks were cashed at a check-cashing business in Worcester; Prime allegedly paid millions of these dollars in cash wages and did not report them to the IRS or its insurer.

Vuong also told UT Services’ insurance carrier that it had only one employee and an annual payroll of only $50,000 when, in actuality, it had dozens of employers and a significantly higher payroll, according to the office. UT Services also released forged certificates of insurance to several clients.

The office also reported that Vuong shifted operations to UT Services from Prime Labor after federal search warrants were executed in November 2017 and that Vuong attempted to hide his role at both firms.

Vuong faces up to 20 years in prison on the wire fraud charges and up to five years in prison on the tax charges.

Source: Feds indict Massachusetts staffing firm owner on tax, wire fraud charges

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