BOSTON – In a shocking turn of events, Tam Vuong, a 43-year-old Worcester man, was arrested today on federal charges of wire fraud. Vuong, a prominent figure in the employment agency sector, is accused of masterminding a massive scam that targeted numerous clients and employees.
According to the criminal complaint, Vuong falsely represented UT Services, a Worcester-based employment agency, to its insurance carrier, stating that the company had only one employee and an annual payroll of $50,000. However, investigators discovered that UT Services had dozens of employees and a significantly higher payroll, with most workers being paid in cash to avoid underreporting wages and minimizing workers’ compensation insurance premiums.
Furthermore, Vuong allegedly disseminated forged certificates of insurance to several clients and underreported UT Services’ payroll on various state and federal filings. This brazen scheme has left many wondering how Vuong was able to evade detection for so long.
It appears that Vuong’s involvement in the employment agency sector stretches far beyond UT Services. Court documents reveal that he previously operated another employment agency, Prime Labor Services, which generated over $25 million in revenue. Vuong shifted operations from Prime Labor Services to UT Services after federal agents executed search warrants in November 2017.
Vuong’s arrest comes as a significant blow to the employment agency sector, which has been plagued by scandals and controversies in recent years. The charges against him carry a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000.
The details contained in the complaint are allegations, and Vuong is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant U.S. Attorney William Abely of Andrew E. Lelling’s Criminal Division.
Key Facts
- State: Massachusetts
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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