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Staffing executive faces five years in prison for underreporting payroll in tax scheme

March 19, 2018

An executive at a temporary employment agency in Massachusetts pleaded guilty Friday in federal court in Boston to willfully failing to collect and pay employment taxes, the US Department of Justice announced. The executive, Huong Le, also known as Lynn Le, faces up to five years in prison and possible restitution of $256,627 when sentenced on June 19.

Le operated a staffing firm that provided workers in Massachusetts and New Hampshire. The agency operated under four different names between 2006 and 2011, including Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc.

Le and others underreported the total number of employees and wages paid to the staffing firm’s payroll company, resulting in the payroll company reporting false forms with the IRS, according to the Department of Justice. Le paid employees in cash and personally cashed more than $6 million in checks payable to her employment agency at a check casher and caused others to cash more than $4.9 million in checks at the check casher in an effort to hide the size of her firm.

In addition, Le used family members and others as nominees to conceal the ownership of the business, according to the Department of Justice.

Le and Tien Chau were indicted last year for conspiring to defraud the government, failing to pay over employment taxes and obstructing internal revenue laws.