Harrisburg man pleads guilty $1 million employment tax fraud case
A Harrisburg man pleaded guilty today to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012. According to U.S. Attorney Peter Smith, Vanny Son, 33, of Harrisburg, and a co-conspirator operated five employee leasing companies which supplied day laborers to several businesses in the Harrisburg area.
The employee leasing companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes. As a result, approximately $1 million in employment taxes were not collected and paid to the IRS, as required by federal law.
Son was indicted by a grand jury on July 10, 2014 along with Son Thach and Hung Danh, also of Harrisburg. Thach pled guilty on September 24, 2014 and Danh remains a fugitive.
Son faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.