MA Man Arrested On Fraud Charges Arising From Role In Running Employment Agency
Boston, MA (WorkersCompensation.com) - A Worcester man was arrested today and charged in federal court on fraud charges arising from his role overseeing UT Services, a Worcester employment agency.
Tam Vuong, 43, was charged with two counts of wire fraud and will appear in federal court in Worcester later today.
According to the criminal complaint, while in his role overseeing and controlling UT Services, 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 paid most of its workers in cash as part of a scheme to underreport wages, and thus fraudulently minimize its workers' compensation insurance premium.
UT Services allegedly disseminated forged certificates of insurance to several clients and underreported its payroll on various state and federal filings.
According to court documents, Vuong previously operated other employment agencies, including Prime Labor Services, which had revenues of more than $25 million and also underreported its wages. Vuong shifted operations from Prime Labor Services to UT Services after federal agents executed search warrants in November 2017.
Each count of wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release and a fine of up to $250,000. 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 R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations, 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 are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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