BOSTON — This is an official press release from the U.S. Department of Justice (USAO - Massachusetts), published as received.
BOSTON – A Lowell man was arrested today in connection with his alleged involvement in payroll tax avoidance and workers’ compensation insurance fraud.
Henry Lam, 67, was indicted by a federal grand jury on June 25, 2025 on charges of failure to collect and pay over taxes and mail fraud. Lam will appear in federal court in Boston at 3:45 p.m. this afternoon.
According to court records, 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.
The charge of failure to collect or pay over taxes provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
