January 6, 2003

PRESS RELEASE

HULL MAN SENTENCED FOR TAX AND FRAUD CRIMES

Boston, MA... A Hull man was sentenced late Friday, January 3, 2003 in federal court for filing false federal tax returns and defrauding the Massachusetts Workers Compensation Bureau.

United States Attorney Michael J. Sullivan; Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation; and William Chase, Acting Special Agent in Charge of the Federal Bureau of Investigation in New England, announced that HONG VAN LAM, age 49, of 98 Packard Avenue in Hull, was sentenced by U.S. District Judge Mark L. Wolf to 2 years' imprisonment, to be followed by 3 years of supervised release. The Judge also ordered LAM to pay restitution in the amount of $372,000 to three insurance companies he defrauded. LAM pleaded guilty on September 10, 2002, to a three-count information charging him with filing false personal and employment tax returns and with mail fraud.

At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial, the evidence would have proven that prior to January 1, 1994, LAM established a business for the purpose of providing 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, opened and ran these businesses in the names of three individuals who acted as "straws" in order to hide their true ownership.

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. In order to lower their insurance premiums, LAM caused his businesses to falsely report to the Workers Compensation Rating and Inspection Bureau of Massachusetts and to various insurance companies their maximum number of employees.

According to prosecutors, it is estimated that LAM will owe the IRS $575,000 in taxes plus interest and penalties. LAM, a Vietnamese refugee, was reminded by Judge Wolf that taxes owed to the United States provide a safety net for those in need and in particular are used to assist refugees to this country.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Stephen G. Huggard, Chief of Sullivan's Public Corruption and Special Prosecutions Unit.

Press Contact: Samantha Martin, (617) 748-3139