Lowell man sentenced to 13 months for hiding more than $6 million in payroll
Henry Lam, who ran a temporary staffing agency in Lowell, paid workers mostly in cash to avoid more than $1.5 million in payroll taxes and cut his workers' compensation premiums, federal prosecutors said.
A Lowell man who ran a temporary staffing agency was sentenced in federal court in Boston to 13 months in prison for dodging payroll taxes and defrauding workers' compensation insurers, the U.S. attorney's office in Massachusetts said.
Henry Lam, 68, was also ordered by Chief Judge Denise J. Casper of U.S. District Court to pay $1,652,573 in restitution and will serve two years of supervised release after his prison term, prosecutors said.
Lam pleaded guilty in May to failing to collect and pay over taxes and to mail fraud. He had been indicted in June 2025 and arrested in July 2025.
According to prosecutors, Lam owned and operated HL Temporary Services, a Lowell temporary employment agency that supplied workers to companies around New England, from 2016 to 2023. Client companies paid the agency by the hour for the temporary workers' labor.
Prosecutors said Lam cashed the client companies' checks at check-cashing businesses in Massachusetts and paid the workers mostly in cash. By doing so, he hid more than $6.2 million in payroll and avoided paying more than $1.5 million in payroll taxes, the office said.
Lam also used the agency's false payroll figures to buy workers' compensation insurance at lower premiums, prosecutors said.
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