A Massachusetts man pleaded guilty in federal court in Boston this week to payroll tax avoidance and workers’ compensation insurance fraud, prosecutors reported.
According to the U.S. attorney’soffice, Henry Lam, of Lowell, used cash payments to employees to hide his firm’s true payroll, avoid collecting and paying taxes, and lowering his workers’ compensation costs.
Between 2016 and 2023, Lam owned and operated HL Temporary Services – a temporary employment agency in Lowell that served companies in Massachusetts. The clients paid HL Temporary Services for the temporary employees’ work on an hourly basis. Lam cashed these client’s checks at check cashing businesses in Massachusetts and paid the temporary employees primarily in cash. By using cash payments, Lam hid over $6.1 million in payroll and avoided paying more than $1.5 million in required payroll taxes…