HARRISBURG, Pennsylvania – In a shocking case of tax evasion, Sam Xen Duong, age 49, of Harrisburg, Pennsylvania, was sentenced yesterday to one year in prison for failing to withhold and pay employment taxes.
According to United States Attorney Gerard M. Karam, Duong previously admitted that between 2012 and 2018, he failed to pay employment taxes for two companies that he owned or co-owned, BCS, Inc., and ETS, Inc. Both companies were located in Harrisburg and provided temporary workers to other businesses.
To perpetuate his scheme, Duong often paid employees in cash and submitted false forms to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
U.S. District Court Judge Sylvia H. Rambo also ordered a one-year term of supervised release to follow the term of imprisonment and over $1.5 million in restitution.
Duong’s scheme went undetected for years, causing significant financial losses to the government and his employees.
As a result of his actions, Duong will serve one year in prison and pay over $1.5 million in restitution.
This case serves as a reminder of the importance of paying employment taxes and the severe consequences of failing to do so.
The United States Attorney’s Office for the Middle District of Pennsylvania will continue to vigorously prosecute cases of tax evasion and other white-collar crimes.
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Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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