Worcester Staffing Firm Hit With Indictment
A Worcester man and his business were indicted today by a Worcester County Grand Jury on 66 counts of wage and hour law violations as well as insurance and tax fraud.
Tam Vuong, 34, operates a company called Labor Solutions, according to the Massachusetts Attorney General. The indictment included charges of failure to pay the minimum wage and overtime, workers' compensation insurance fraud and willful failure to file a tax return.
Authorities began an investigation into Vuong in April 2008. Investigations into complaints about the company found that "a substantial number of employees" were not paid the minimum wage or overtime rates for the period of September 2007 to September 2009, according to the attorney general's office.
Investigators also allege that Labor Solutions collected more than "$20 million by providing temporary employees to client companies, while paying out approximately $11 million in cash wages," none of which was disclosed to its workers' compensation carrier or to the Massachusetts Department of Revenue.
Authorities also allege that the company never filed a corporate tax return from 2002 through 2007.
The loss to the state as a result of the unemployment insurance fraud is estimated at more than $655,000. The workers' compensation insurance carrier, Traveler's Insurance Co., is estimated to be out at least $509,000 in unpaid premiums.
Vuong and his company are expected to be arraigned in Worcester Superior Court at a later date.
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