Henry Lam, Tax Evasion, Massachusetts 2026

Lowell Man Pleads Guilty to Tax Evasion

BOSTON – A Lowell man pleaded guilty in federal court in Boston to his involvement in payroll tax avoidance and workers' compensation insurance fraud. Henry Lam, 68, pleaded guilty to failure to collect and pay over taxes and mail fraud.

According to court documents, Lam owned and operated HL Temporary Services – a temporary employment agency in Lowell that served client companies in Massachusetts. Between 2016 and 2023, Lam used cash payments to hide over $6.1 million in payroll and avoid paying more than $1.5 million in required payroll taxes.

The defendant also used HL Temporary Services' false payroll numbers to obtain worker's compensation insurance at lower premium rates. Lam was arrested in July 2025, following his June 2025 indictment.

U.S. District Court Chief Judge Denise J. Casper scheduled Lam's sentencing for Aug. 27, 2026. 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, 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.

HL Temporary Services, the temporary employment agency owned by Lam, will likely face severe consequences for its role in the tax evasion scheme. The case highlights the importance of proper tax collection and reporting for businesses, particularly those in the temporary employment industry.

The sentencing for Lam is scheduled for Aug. 27, 2026. The outcome of the case will be closely watched by the business community and tax authorities in Massachusetts.

Henry Lam, a 68-year-old Lowell man, faces sentencing for his role in a tax evasion scheme that hid over $6.1 million in payroll and avoided paying more than $1.5 million in required payroll taxes.

Source: https://www.justice.gov/usao-ma/pr/lowell-man-pleads-guilty-hiding-more-6-million-payroll