Thach Pleads Guilty to $1 Million Tax Conspiracy
After years of dodging the law, Son Thach, 55, has finally admitted to his role in a massive tax fraud scheme that cheated the IRS out of $1 million in employment taxes. Thach, a resident of Harrisburg, Pennsylvania, pleaded guilty to conspiracy to defraud the IRS in a United States District Court.
According to the evidence gathered by the IRS’s Criminal Investigation Division, Thach and a co-conspirator operated five employee leasing companies in the Harrisburg area. These companies – V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services, and TD Staffing – supplied day laborers to various businesses in the area. However, between 2006 and 2012, these companies paid cash wages totaling over $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. Thach’s guilty plea has brought an end to his involvement in this sophisticated tax evasion scheme, but the full extent of his co-conspirator’s crimes remains to be seen.
Thach faces a maximum sentence of five years in prison, a $250,000 fine, and up to three years of supervised release. He will also be required to pay restitution to the IRS. No date has been set for sentencing, but Thach’s fate will be decided by Judge John E. Jones III. The court will consider various factors, including the nature and seriousness of the offense, Thach’s history and characteristics, and the need to punish him, protect the public, and provide for his educational, vocational, and medical needs.
The case was investigated by the IRS’s Criminal Investigation Division and is being prosecuted by Senior Litigation Counsel Bruce Brandler. The guilty plea is a significant blow to those involved in this massive tax fraud scheme, and it serves as a reminder of the importance of paying one’s taxes and following the law.
Thach’s guilty plea is a stark reminder of the consequences of tax evasion. As Grimy Times continues to investigate this case, we will bring you updates on the trial and any subsequent developments.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
ðŸâ€â€™ Get the grimiest stories delivered weekly. Subscribe free →
