A June 2026 press release from the U.S. Department of Justice shared that a Texas man and woman pleaded guilty to operating a significant under-the-table cash payroll at their nationwide nail salon business.

According to court documents and statements made in court, Vinh Q. Ho, 53, and Thanh Lan Do, 34, owned and managed a business comprised of over 60 high-end nail salons across the United States, doing business as the Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas. Ho was the de-facto CEO and Do oversaw management of the salons. 

The salons employed nail technicians, a significant portion of whose compensation was paid in cash. At the end of each year, the business prepared tax forms reporting each nail technician’s compensation. To help the technicians conceal that income and evade taxes, these forms did not include the cash compensation. Ho and Do trained salon managers to operate the under-the-table cash payroll. They also prepared false Forms 1099 and instructed employees to keep the true payroll hidden. 

Ho also underreported income on his 2020 and 2021 individual income tax returns.

As part of his plea agreement, Do agreed that between 2016 and 2024, the nail salons paid over $116 million in cash compensation that was not reported to the IRS, which caused an estimated actual tax loss of at least $32 million.

Ho and Do both pleaded guilty to one count of conspiracy to defraud the United States, and Ho also pleaded guilty to one count of tax evasion. They are scheduled to be sentenced at a later date. Ho faces a maximum penalty of 10 years in prison. Do faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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 made the announcement.

IMPACT ON THE INDUSTRY

Attorney Mike N. Vo works closely with the salon industry, co-founding the Professional Nails Association based in Orange County, California. He has been a panel speaker at numerous nail conventions and industry-specific events. He is also the co-host of Loopholes and Lawsuits, where he and co-host Jaime Schrabeck discuss all things salon-related.

NAILS asked Vo for his take on this recent case:

"The practice unfairly disadvantages the salon owners and employees who do abide with the law," Vo says.  "It makes it more difficult for salons to hire qualified and exceptional talent when that talent is financially incentivized to work for cash and able to keep more in their pockets.

"Unlawful salon management practices have always been on the radar of regulating agencies and industry members, but now, with criminal charges pursued it raises the stakes.  Many in the industry are rattled and having to make difficult decisions on compliance."