MASSACHUSETTS – The owner of a Massachusetts based employment agency had been arrested for underreporting the wages of workers and minimizing its workers’ compensation insurance premium. The US Attorney’s Office officially declared that Worcester, Massachusetts’ employment agency operator was charged with two counts of wire fraud.
UT services, which Vuong regulated had paid cash to its workers by making them part of a scheme in order to ensure the underreporting of wages. Also, UT services was blamed for distributing forged certificates of insurance to many of his clients and underreporting its payroll on various instances of filings at state and federal level.
While reporting to its insurance carrier, Travelers Insurance Co., Vuong gave a false report and said that the company only comprised of one employee and it had an annual payroll of $50,000. Whereas in reality, the company had dozens of employees and it had a way too much higher payroll than specified in documents. The court documents stated that Vuong had also been involved in underreporting payroll while operating other employment agencies. Before jumping to UT services, he was a part of Prime Labor Services. He switched to UT Services post the release of search warrants by federal agents in 2007. Vuong had also been found guilty in 2010 in for misclassifying workers and cheating Travelers Insurance Co. for over $500,000 premiums. And he faced probation and restitution for it.
Now Vuong has been sentenced for two counts of wire by the Federal court, which means for each count he would face up to 20 years of prison and a fine of up to $250,000.
Though this has been a bad case, but there are several other employment agencies as well that work in the US to provide employment services for hiring people for various purposes. FrontlineSourceGroup is one such employment agency in Phoenix which has gained a lot of popularity over the course of time for providing staffs in various sectors such as IT, accounting finance, call centers, medical office, and clerical, to name a few. And all such companies take good care of abiding by the rules and regulations, and staying focused to good practices.