Yesterday federal agents arrested Henry Lam, 67, of Lowell for allegedly failing to collect and pay taxes and mail fraud.
According to a press release from the U.S. District Attorney’s Office:
between 2016 and 2023, Lam owned and operated HL Temporary Services – a temporary employment agency in Lowell that served client companies in Massachusetts. The client companies paid HL Temporary Services for the temporary employees’ work on an hourly basis. Lam allegedly cashed these client’s checks at check cashing businesses in Massachusetts and paid the temporary employees primarily in cash. By using cash payments, Lam allegedly hid over $6.1 million in payroll and avoided paying more than $2.4 million in required payroll taxes. It is further alleged that Lam also used HL Temporary Services’ false payroll numbers to obtain worker’s compensation insurance at lower premium rates.Â
If convicted Lam could face up to five years in federal prison.