Massachusetts Employment Agency Owner Pleads Guilty to Tax Evasion
In a recent development that has sent ripples through the Massachusetts business community, Su Nguyen, the 60-year-old owner of General Employment Services, admitted to a multi-million dollar tax evasion scheme. The case, prosecuted by the office of Acting U.S. Attorney Joshua S. Levy, has highlighted the misuse of a check-cashing service to conceal income and evade taxes.
Nguyen’s guilty plea in federal district court revealed a calculated attempt to hide approximately $10 million in company assets over a span of four years. By utilizing a Worcester-based check-cashing service, Nguyen was able to bypass the traditional banking system, cashing checks received as payment for services rendered by his temporary employment agency.
While some of the income was deposited into a corporate bank account and reported to the Internal Revenue Service, it was merely a fraction of the total earnings. The majority of the funds were cashed through the check-cashing service and not reported, allowing Nguyen to use the untaxed money for personal expenses and to pay employee wages under the table.
The IRS has determined that Nguyen’s actions resulted in a failure to pay over $2 million in personal income and corporate taxes. This substantial loss to the treasury has underscored the importance of vigilance against tax evasion practices.
As the case proceeds, the business community is reminded of the legal and ethical obligations that come with corporate ownership. Nguyen’s sentencing is scheduled for September 5, which will likely serve as a cautionary tale for other businesses considering similar practices. The employment agency owner’s plea serves as a stark reminder of the consequences that come with attempting to defraud the government and evade tax responsibilities.
