WORCESTER – A local man pleaded guilty in federal court on Thursday August 5 to taxes and fraud charges based on his role in operating employment agencies in Worcester.
Tam Vuong, 46, of Worcester, pleaded guilty to 14 counts of wire fraud and four counts of non-payment of taxes. The district court judge set the sentence for December 1.
Vuong oversaw two employment agencies in Worcester, Prime Labor LLC and UT Services, Inc. Both companies paid some employees by check, but most in cash. Prosecutors claim Vuong fraudulently concealed it in connection with tax returns and insurance checks.
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.
Vuong falsely told UT Services’ insurance company that the company had only one employee and an annual payroll of only $ 50,000. UT Services had dozens of employees and a significantly higher payroll. UT Services also issued false insurance certificates to several clients and failed to notify clients of the cancellation of its workers’ compensation policy.
In January 2021, Julio Lopez of Los Angeles, California, a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is expected to be sentenced on September 29, 2021.
In February 2021, Linda Le of Shrewsbury, a former employee of UT Services, pleaded guilty to perjury for giving false testimony in front of a federal grand jury and was sentenced in May 2021 to two years probation.
The wire fraud charges each carry a sentence of up to 20 years in prison.
The charges for non-payment of taxes each carry a sentence of up to five years in prison.