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Worcester Employment Agency Operator Pleads Guilty to Fraud

By TWIW Staff | August 6, 2021
Last Updated: August 6, 2021

WORCESTER – A local man pleaded guilty in federal court on Thursday, August 5, to tax and fraud charges based on his role operating employment agencies in Worcester.

Tam Vuong, 46, of Worcester, pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes. The District Court judge scheduled sentencing for December 1.

Vuong oversaw two employment agencies in Worcester, Prime Labor LLC and UT Services, Inc. Both businesses paid some employees by check but most in cash. Prosecutors say Vuong fraudulently concealed in connection with tax filings and insurance audits.

Vuong 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 Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.

Vuong falsely told UT Services’ insurance carrier 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 disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.

In January 2021, Julio Lopez of Los Angeles, Calif., a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is scheduled to be sentenced on Sept. 29, 2021.

In February 2021, Linda Le of Shrewsbury, a former employee of UT Services, pleaded guilty to perjury for giving false testimony before a federal grand jury and was sentenced in May 2021 to two years of probation.

The charges of wire fraud each provide for a sentence of up to 20 years in prison.

The charges of failing to pay taxes each provide for a sentence of up to five years in prison.

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