A Massachusetts businessman has entered a guilty plea for his involvement in a payroll tax fraud scheme that lasted over several years, authorities announced. Det Tran, 62, of Dorchester admitted to withholding more than $2.1 million in employment taxes from his staffing agency, HTP Temp. Inc.
According to the U.S. Attorney's Office, Tran paid out $8 million in unreported cash wages from 2018 to 2021, and as a result, instructed his accountant to file falsified tax documents, from 2018 through 2021, Tran evaded payment of employment taxes. He has pleaded guilty to two counts of failure to collect and pay over employment taxes with U.S. District Judge Leo T. Sorokin scheduling sentencing for Dec. 10, 2024.
HTP's practice of paying in cash "off the books" allowed Tran to operate beneath the radar for a time, but his fraudulent actions ultimately caught up with him. The charges Tran faces carry severe penalties, including the possibility of up to five years in prison, three years of supervised release, and fines that may amount to $250,000 or twice the gain or loss from the scheme.
