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Justice News

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Thursday, August 29, 2019

Worcester Man Indicted on Tax and Fraud Charges

BOSTON – A Worcester man was indicted today on federal tax and fraud charges arising from his role overseeing various Worcester-based employment agencies.

Tam Vuong, 44, was charged with 14 counts of wire fraud and four counts of failing to pay taxes.  Vuong had previously been charged by criminal complaint and arrested in April 2019, and has been released since that time.  He will appear in U.S. District Court in Worcester for an arraignment.

According to court documents, Vuong oversaw Prime Labor LLC and UT Services, Inc., both of which were employment agencies based in Worcester.  Each agency paid a few employees by check but paid most employees in cash.  Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in connection with tax filings and insurance audits.  Vuong allegedly concealed 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, 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 then failed to report these wages to the IRS or to its insurer.

In addition, while in his role overseeing and controlling UT Services, it is alleged that Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll.   UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
It is further alleged that Vuong shifted operations from Prime Labor Services to UT Services after federal search warrants were executed in November 2017.  Vuong allegedly took steps to hide his role with both Prime and UT Services.

On the wire fraud charges, Vuong faces up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 on each count.  On the tax charges, he faces up to five years in prison, up to three years of supervised release and a fine of up to $10,000 on each count.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph Bonavolonta, Special Agent in Charge of the FBI Boston Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.  

The details contained in the complaint and indictment are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Topic(s): 
Tax
Component(s): 
Updated September 9, 2019