Massachusetts Man Charged With Tax, Comp Fraud Crimes

Aug. 26, 2002
Hong Van Lam of Hull, Mass., has been charged in federal court with filing false federal tax returns and with defrauding the Massachusetts Workers' Compensation Bureau.

The federal government, which filed the charges, alleges that Lam established a business that provided temporary employment services to contracting companies in the Boston and south shore areas of Massachusetts. The business operated until the spring of 1998 using various names, including New England Temporary Work, New England Temp Work and N. Tech Temp Service. Lam, along with others, allegedly opened and ran these businesses in the names of three individuals who acted as "straws" in order to hide the true ownership of these companies.

The government alleges that during this time period, no income tax returns were filed by any of the businesses. While at the same time, U.S. Quarterly Employment Tax returns (Forms 941) were filed which underestimated both the maximum number of employees employed during any fiscal quarter and the annual payroll. The government also claims that in order to lower their insurance premiums, Lam falsely reported his companies' maximum number of employees to the Workers' Compensation Rating and Inspection Bureau of Massachusetts and to various insurance companies.

If convicted on these charges, Lam faces up to five years' imprisonment and three years' probation, and a $250,000 fine.

The Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation investigated the case, and it is being prosecuted by Assistant U.S. Attorney Stephen G. Huggard, chief of the Public Corruption & Special Prosecutions Unit.

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!