The US Department of Justice announced that Vinh Q. Ho, 53, and his wife Thanh Lan Do, 34, pleaded guilty early this month to operating an undeclared cash payroll system for employees at their nail salon chain.
Ho served as CEO, while Do managed over 60 high-end nail salons across the US, operating under the brands Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas.
According to court documents, these salons primarily paid technicians in cash, without reporting these payments in end-of-year tax filings, thereby concealing actual income and evading taxes.
Ho and Do were accused of training and instructing salon managers to operate this undeclared payroll system. Under a plea agreement, Do admitted that from 2016 to 2024, the nail salon chain paid over 116 million USD in cash wages to technicians without reporting it to the Internal Revenue Service (IRS), resulting in at least 32 million USD in lost tax revenue.
 |
Anthony Vince’ Nail Spa in Santa Clarita, California. Photo: Google Maps. |
Both Ho and Do pleaded guilty to conspiracy to defraud the US government. Ho also pleaded guilty to an additional charge of tax evasion, facing a maximum sentence of 10 years in prison. Do faces a maximum of five years in prison. The US federal court has not yet set a sentencing date.
On his personal Facebook account, Ho addressed the plea decision, not denying responsibility for his wrongdoing but stating he did not personally pocket or benefit from the money. He explained that the practice of paying technicians partially in cash "had existed long before he and his wife entered the profession."
"This operating method is deeply ingrained in the work model for both employers and technicians within the Vietnamese community," he explained. "Many in the industry understand that if salon owners do not pay a portion in cash, it becomes very difficult to retain technicians. Without technicians, a salon cannot operate, serve customers, or grow."
Ho stated that because this practice had existed for so long, many people, including him and his wife, considered it normal, despite its illegality. "This serves as a wake-up call for the entire industry," Ho said, noting that US officials have begun paying more attention to the nail sector.
"We sincerely hope that both owners and technicians will change," Ho expressed. "Owners need to be more transparent and compliant, and technicians need to cooperate. We hope that from this lesson, the nail industry community will reflect, amend practices, and build a lawful, transparent, and sustainable work environment for future generations."
The tax fraud plea by Ho and Do has drawn significant attention within the Vietnamese community in the US, where the nail industry has long provided a livelihood for many immigrant families.
US television channels World Channel and PBS reported that the nail industry is one of the most popular sectors for Vietnamese Americans, with an estimated value of 8 billion USD.
Duc Trung
