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Harrisburg man sentenced for failing to pay $1 million in employment taxes to the IRS

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HARRISBURG, PA (WPMT)  —  Vanny Son, 33, of Harrisburg, was sentenced today in federal court to 3 years and a month in prison followed by 3 years supervised release, and restitution to the IRS in the amount of $682,897, for a conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012.

According to the U.S. Attorney’s Office, Son 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 and Danh helped Son operate the employee leasing companies. Thach was previously sentenced to serve one month imprisonment with two years supervised release and pay $682,897 in restitution. Danh remains a fugitive.

Son was ordered to report to the Bureau of Prisons on May 22, to begin serving his sentence.

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