Harrisburg businessman pleads guilty to failing to pay $337,000 in unemployment taxes
HARRISBURG, Pa. – Hung Danh, 55, of Harrisburg, has pled guilty in federal court to conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing. The guilty plea was accepted by U.S. District Court Judge John E. Jones, III and sentencing was scheduled for January 2016.
According to the U.S. Attorney, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing. HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.
Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form. Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941.
Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing. Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country last month at JFK airport.
Last March, Vanny Son, 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy. Also last March, Son Thach, 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.