Anthony Vince nail salon owners plead guilty in U.S. tax fraud case

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Dan Blystone

21 hours ago

Anthony Vince nail salon owners plead guilty in U.S. tax fraud case — Nail salon tax fraud exposed

Federal prosecutors say the operators of a nationwide nail salon chain used a large off-the-books cash payroll that concealed worker compensation from tax authorities. The case centers on more than 60 salons and more than $116 million in cash pay that was not reported to the IRS between 2016 and 2024.

Highlights

Vinh Q. Ho and Thanh Lan Do pleaded guilty to operating an under-the-table cash payroll scheme at over 60 salons nationwide under Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas.
From 2016 through 2024, the salons concealed more than $116 million in cash compensation, resulting in an estimated tax loss of at least $32 million to the IRS.
Ho faces up to 10 years and Do up to 5 years in prison, with sentencing later, highlighting enforcement risks for service businesses using secret cash payrolls.

Guilty pleas detail payroll concealment scheme

As reported by the U.S. Department of Justice, Texas residents Vinh Q. Ho, 53, and Thanh Lan Do, 34, pleaded guilty on Monday to running an under-the-table cash payroll at a nationwide salon business operating as Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas.

Court documents and statements made in court say the pair owned and managed more than 60 high-end nail salons across the United States. Ho acted as the de-facto CEO, while Do oversaw salon management.

Prosecutors say a significant share of nail technicians' compensation was paid in cash, but year-end tax forms did not include those amounts. Ho and Do also trained salon managers to run the cash payroll, prepared false Forms 1099 and instructed employees to keep the actual payroll hidden.

Ho also pleaded guilty to tax evasion tied to underreporting income on his 2020 and 2021 individual tax returns.

Tax loss and sentencing exposure

Under Do's plea agreement, the salons paid more than $116 million in cash compensation that was not reported to the IRS from 2016 through 2024. Prosecutors estimate the resulting actual tax loss at at least $32 million.

Both defendants pleaded guilty to one count of conspiracy to defraud the United States, and Ho separately pleaded guilty to one count of tax evasion. They are due to be sentenced later, with Ho facing a maximum penalty of 10 years in prison and Do facing up to five years, while a federal district court judge determines the final sentence under the U.S. Sentencing Guidelines and other statutory factors.

The announcement was made by Assistant Attorney General Colin McDonald of the Justice Department's National Fraud Enforcement Division and U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio. The case underscores continuing enforcement risks for cash-intensive service businesses where payroll reporting and worker tax compliance are under scrutiny.

Our earlier article on a federal tax refund fraud scheme detailed how Maryland resident Kendra Scarborough pleaded guilty after filing false IRS returns in the names of purported trusts she controlled. Prosecutors said the filings sought more than $1.1 million in improper refunds, led to a $412,000 payout, and that some of the money was used for personal expenses, with sentencing to follow and potential prison time and restitution on the table.

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