[ad_1]
The proprietor of a Massachusetts staffing firm has been sentenced to federal jail for tax fraud and staff’ compensation insurance coverage fraud.
Dam Ngoc Luong, the 70-year-old proprietor of 4 Seasons Temp, Inc., a short lived employment company based mostly in Dorchester, Massachusetts, was sentenced final week by Choose Leo T. Sorokin to at least one yr and at some point in federal jail for finishing up multi-year schemes to commit tax fraud and defraud her staff’ compensation insurance coverage supplier.
Responsible Plea and Sentence of Jail, Supervised Launch, and Restitution to IRS and Vacationers
Earlier this yr, Ms. Luong pleaded responsible to 2 counts of submitting false company and particular person tax returns, three counts of failure to gather and pay worker withholding taxes, and one depend of insurance coverage fraud.
At her sentencing on September 15, 2023, Choose Sorokin ordered Ms. Luong to serve one yr and at some point in jail, three years of supervised launch following her jail sentence, and the fee of $4,149,039.61 in restitution. The restitution is payable by $3,993,169 to the IRS and $155,870 to Vacationers Insurance coverage Co. On the insurance coverage fraud depend, the Choose entered a forfeiture judgment in opposition to Ms. Luong for an extra $155,870, equal to the quantity she defrauded Vacationers.
$14 Million in Earnings Hidden from the IRS and Her Staff’ Compensation Insurer
The legal case in opposition to Ms. Luong targeted solely on the tax and insurance coverage fraud she orchestrated because the proprietor of 4 Seasons Temp from 2015 to 2019. In line with prosecutors, throughout that point, she knowingly didn’t report greater than $14 million in 4 Seasons enterprise earnings to the IRS and Vacationers Insurance coverage.
Ms. Luong paid greater than $12 million in money to the momentary company’s staff with none deductions. Consequently, she didn’t pay over $3 million in employment taxes owing to the IRS by 4 Seasons for her illegal “beneath the desk” compensation funds.
Luong defrauded Vacationers, the insurance coverage firm offering staff’ compensation insurance coverage protection to 4 Seasons, by concealing the money funds made to her staff. By misrepresenting the 4 Seasons payroll, she fraudulently decreased her staff’ compensation premiums by $155,000.
Federal Prosecutors Really useful 18 Months Jail Time
Of their sentencing memorandum for Choose Sorokin, the federal prosecutors emphasised that the frauds of which Ms. Luong stood convicted totaled $4,149,000 losses to the Inner Income Service and Vacationers Insurance coverage Firm. Nevertheless, as alleged within the indictment, these losses included her actions between 2015 and 2020.
The prosecution’s sentencing memorandum acknowledged: “The $4.1 million losses don’t embody Ms. Luong’s brazen and defiant continuation of her legal scheme even after this prosecution started—certainly, even after she had pleaded responsible earlier than this Court docket.”
Based mostly on its sentencing memorandum arguments, the federal government requested the court docket sentence Ms. Luong as follows:
- Imprisonment for 18 months
- Three years of supervised launch
- Restitution of $155,870.14 to Vacationers Insurance coverage Firm
- Restitution of $3,993,169.47 to the IRS as a situation of supervised launch
- Forfeiture of $155,870
Choose Sorokin accepted most however not all the authorities’s really useful sentence. Per the Choose’s order, Ms Luong is to self-report to the establishment designated by the Bureau of Prisons by 2:00pm October 27, 2023
The Prosecution Group
Appearing United States Lawyer Joshua S. Levy and Harry Chavis, Jr., Particular Agent in Cost of the Inner Income Service’s Felony Investigation in Boston, introduced Ms. Luong’s sentence. Assistant U.S. Lawyer Victor A. Wild of the Securities, Monetary & Cyber Fraud Unit prosecuted the case.
[ad_2]