April 16, 2019

Worcester man charged with fraud while running employment agency

A Worcester man is facing federal charges after authorities say he lied to his employment agency's insurance carrier and underreported wages to minimize his workers' compensation insurance premiums.

Tam Vuong, 43, is charged with two counts of wire fraud.

According to investigators, Vuong, while overseeing UT Services in Worcester, falsely told the company's insurance carrier it had only one employee and an annual payroll of $50,000 when in actuality the company had dozens of employees and a much higher payroll.

The company paid most of its workers in cash as part of the scheme to underreport wages and fraudulently minimize its workers' compensation insurance premium, the U.S. Attorney's Office for the District of Massachusetts said.

IT services disseminated forged certificates of insurance to several clients and underreported its payroll on several state and federal documents.

According to authorities, Vuong previously operated other employment agencies, including Prime Labor Services, which had revenue of more than $25 million and underreported its wages. Vuong moved those operations to UT Services after federal agents executed search warrants in November 2017.

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