Ethan Nguyen, Tax Evasion, Pennsylvania 2013

Temporarily Thriving Employment Agencies Exposed for Massive Tax Evasion Scheme

PHILADELPHIA, PENNSYLVANIA - In a stunning expose, the United States Attorney’s Office for the Middle District of Pennsylvania announced that Ethan Nguyen, age 34, of Phoenixville, Pennsylvania was sentenced to a 12 month plus one-day term of imprisonment, two years of supervised release and a $300 fine on [undisclosed date].

Judge Edwin M. Kosik further ordered that Nguyen pay $45,128 in restitution to the Pennsylvania Department of Unemployment Insurance. This revelation comes after a lengthy joint investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, the Pennsylvania State Police, and United States Department of Health and Human Services.

Nguyen, the operator of Four Seasons Services, a temporary employment agency with offices in Philadelphia, Pennsylvania, and contracted with businesses in the Scranton and Wilkes-Barre area to provide day labor employees. According to United States Attorney Peter J. Smith, Nguyen and his co-defendants, Andri Gunawan and Eleni Nguyen, would fulfill these contracts by hiring illegal aliens and paying them cash “under the table,” failing to pay various federal, state and local taxes, fees or compensation insurance.

The temporary employment agency was able to greatly increase its profits for providing such temporary labor by evading taxes and violating labor laws. Four Seasons Services was later changed to business names Direct Staffing Services(DSS), Express Staffing Services(ESS) and First Choice Staffing(FCS).

Ethan Nguyen, Andri Gunawan and Eleni Nguyen were charged in separate criminal Informations. All three pleaded guilty. Eleni Nguyen is scheduled for sentencing on March 19, 2013. Gunawan is scheduled for sentencing on April 4, 2013.

The investigation revealed a complex web of deceit and corruption, exposing the dark underbelly of the temporary employment industry. The case is assigned to Assistant United States Attorney Todd K. Hinkley.

Defendant Information:

Defendant Name: Ethan Nguyen

Exact Criminal Charges: Tax Evasion

City and State: Phoenixville, Pennsylvania

Exact Date: [undisclosed date]

Sentence or Outcome: 12 month plus one-day term of imprisonment, two years of supervised release and a $300 fine

Dollar Amounts where Applicable: $45,128 in restitution to the Pennsylvania Department of Unemployment Insurance, $300 fine

Source: https://www.justice.gov/usao-mdpa/pr/operator-temporary-employment-agencies-contracted-services-scranton-and-wilkes-barre