Harrisburg businessman gets 3 years in $1M tax fraud case

HARRISBURG, Pa. (WHTM) – A Harrisburg man will spend three years in prison for conspiring to defraud the IRS of approximately $1 million in employment taxes.

Vanny Son, 33, was sentenced Thursday in U.S. District Court to 37 months in prison followed by three years supervised release, according to U.S. Attorney Peter Smith. He must also pay restitution to the IRS in the amount of $682,897.

Son, who pleaded guilty in October, operated five employee leasing companies that supplied day laborers to Harrisburg-area businesses but did not withhold Social Security, Medicare, and other employment taxes between 2006 and 2012, Smith said.

The five businesses paid cash wages of more than $7 million during that time, Smith said.

The companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing.

Son was indicted by a grand jury last year along with Son Thach and Hung Danh, also of Harrisburg.

Thach was sentenced to serve one month in prison with two years supervised release and pay $682,897 in restitution. Danh remains a fugitive.

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