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Operator of day labor firms pleads guilty, faces prison

October 17, 2014

The operator of five employee leasing companies which supplied day laborers to several businesses in the Harrisburg, Penn., area pleaded guilty to tax evasion, the US Attorney’s Office announced.

Vanny Son, 33, of Harrisburg, pleaded guilty to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012, according to the US Attorney’s Office. He faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.

According to US Attorney Peter Smith, Son and a co-conspirator operated five employee leasing companies: V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes.

Son was indicted by a grand jury on July 10, along with Son Thach and Hung Danh, also of Harrisburg. Thach pled guilty on Sept. 24 and Danh remains a fugitive.

Another operator of a day labor firm, also of Harrisburg, Penn., pleaded guilty to tax evasion charges last month.