Employee Leasing Company Owners Arrested On Tax Fraud Charges
PHILADELPHIA - Moni Son and Sreang Po, both 60, both naturalized U.S. citizens living in Philadelphia, were charged by indictment, unsealed today, with conspiracy to defraud the United States and failure to collect and pay over employment taxes, announced United States Attorney Zane David Memeger.
From 2007 through 2008, Son and Po were corporate officers of Asian American Labor Connection, an employee leasing corporation located in Philadelphia from 2007 through 2008. As corporate officers of Asian American Labor Connection, Son and Po were required to collect and remit, on a quarterly basis, Federal Insurance Contribution Act (FICA) taxes to the Internal Revenue Service arising from the wages that they paid their employees.
According to the indictment, during the period of March 31, 2007 through December 31, 2007, Asian American Labor Connection had taxable wages of $760,728.73, but only reported $88,288.00 as taxable wages. During the period of March 31, 2008 through December 31, 2008, according to the indictment, Asian American Labor Connection had taxable wages of $751,438.43, but only reported $91,647.43 as taxable wages to the IRS.
If convicted the defendants face a maximum possible sentence of 10 years in prision, a fine of $ 500,000, a special assessment of $200, and three years of supervised release.
The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.