Henry Lam, owner of Lowell, Massachusetts, staffing firm HL Temporary Services, was sentenced on September 30, 2026, to 13 months in federal prison for hiding more than $6.2 million in payroll, avoiding more than $1.5 million in required payroll taxes, and using false payroll figures to obtain lower workers’ compensation premiums. The U.S. Attorney’s Office for the District of Massachusetts said Lam must also pay $1,652,573 in restitution.
How did the payroll scheme work?
From 2016 through 2023, HL Temporary Services supplied temporary employees to client companies in New England, which paid the agency by the hour for their work. According to the U.S. Attorney’s Office for the District of Massachusetts, Lam cashed client checks at check-cashing businesses and paid employees primarily in cash. Prosecutors said this concealed the payroll from reporting and reduced the payroll figures used to calculate workers’ compensation insurance premiums.
The September 30, 2026, sentencing announcement says more than $6.2 million in payroll was hidden and more than $1.5 million in required payroll taxes were avoided. Those are figures specific to this criminal case, not estimates of industry-wide losses. The U.S. Attorney’s Office’s sentencing announcement is the primary source for the conduct and final figures.
What sentence did Lam receive?
Chief Judge Denise J. Casper of the U.S. District Court in Boston sentenced Lam to 13 months in prison, followed by two years of supervised release, and ordered $1,652,573 in restitution, according to the U.S. Attorney’s Office. Lam pleaded guilty in May 2026 to failure to collect and pay over taxes and mail fraud.
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Why is the payroll figure different from the earlier announcement?
The Justice Department’s May 28, 2026, guilty-plea announcement described more than $6.1 million in hidden payroll. The later sentencing announcement reports more than $6.2 million. The latter is the figure to use for the sentencing outcome; the releases report figures at different stages of the case. The May 28 plea announcement gives the earlier amount.
Case timeline
- June 2025: Lam was indicted, according to the sentencing announcement.
- July 2025: Lam was arrested.
- May 2026: He pleaded guilty to failure to collect and pay over taxes and mail fraud.
- September 30, 2026: He was sentenced to prison and supervised release and ordered to pay restitution.
The Insurance Fraud Bureau of Massachusetts assisted with the case, and Assistant U.S. Attorney Kristen A. Kearney prosecuted it, the U.S. Attorney’s Office said.
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