Tax Law Center Blog

In a case that highlights the serious consequences of payroll tax fraud, two men from Camden, New Jersey, were indicted for conspiring to defraud the Internal Revenue Service (IRS) and allegations of concealing cash wages paid to employees and failing to remit payroll taxes owed to the government.

The U.S. Dept of Justice recently announced the indictment of Tri Anh Tieu and Andy Tran on charges of conspiracy to defraud the United States. The indictment alleges that Tieu, owner of Tri States Staffing LLC, and Tran, an employee and representative of the company, engaged in a scheme to conceal cash wages paid to employees and failed to remit the associated payroll taxes to the Internal Revenue Service (IRS).

Tri States Staffing LLC, based in Pennsauken, New Jersey, provided temporary labor to businesses in Gloucester and Burlington Counties. Between the third quarter of 2018 and the second quarter of 2022, the company received over $2.5 million in payments from its clients. The indictment alleges that during this period, Tieu and Tran paid employees in cash to avoid reporting these wages to the IRS and failed to pay the required payroll taxes. Additionally, both Tieu and Tran are accused of filing false personal income tax returns that omitted income received from Tri States Staffing. It is further alleged that Tieu used a portion of the unremitted payroll taxes for personal expenditures, including gambling.

The charge of conspiracy to defraud the United States carries a maximum penalty of five years in prison and a fine of up to $250,000. Both defendants were arraigned before U.S. Magistrate Judge Elizabeth A. Pascal and released on $100,000 unsecured bonds.

This case highlights the legal obligations of employers to accurately report employee wages and remit the appropriate payroll taxes for cash wages.

For more detailed information, please refer to the official press release from the U.S. Department of Justice: Justice Department.