Su Nguyen has owned and operated a temporary employment agency called General Employment Services Inc. since 2015, prosecutors said.
His company placed temporary workers with client companies, who in turn would manage the day-to-day activities of those workers and pay a fee to Nguyen’s company. General Employment Services must pay the temporary workers as well as state and federal taxes.
Between 2016 and 2020, Nguyen would use a business bank account to cash the checks received from client companies and pay some temporary worker wages, according to an indictment against him. He reported this income and wages paid to his accountant, who reported that information to the IRS.
But Nguyen also “cashed the majority of client checks” at a Worcester check casher, money from which he would then use to pay some temporary workers but also for personal purposes, according to the indictment. This income and these wages weren’t disclosed to the accountant and therefore not reported to the IRS.
Investigators say Nguyen did not disclose over $10 million in income and avoided paying more than $2 million in federal taxes.
He was arrested Monday and charged with three counts of aiding and assisting the filing of a false tax return. Each of these counts can lead to up to three years in prison, up to one year of supervised release and a fine of up to $250,000, according to the U.S. Attorney’s Office.
Nguyen was released after a first appearance in federal court.
Hannah Morse covers growth and development for The Patriot Ledger. Contact her at email@example.com.
This article originally appeared on The Patriot Ledger: Quincy man avoided paying millions in federal taxes, investigators say