BOSTON – A Randolph woman was arrested today in connection with her involvement in a payroll tax avoidance scheme.
Lilian Giang, 53, was indicted by a federal grand jury with mail fraud and failure to collect and pay over taxes. Giang was released on conditions following an appearance in federal court in Boston this afternoon before U.S. District Court Magistrate Judge Donald L. Cabell.
According to court records, between 2015 and 2019, Giang owned and operated Able Temp Agency, a temporary employment agency in Quincy that served client companies in Massachusetts. The client companies paid Able Temp Agency for the temporary employees’ work on an hourly basis. Giang deposited those payments into bank accounts in the name of Able Temp Agency that she controlled, and then allegedly paid the temporary employees through a combination of checks and cash. By using cash payments, Giang allegedly hid over $3.2 million in payroll and avoided paying more than $815,000 in required payroll taxes. It is further alleged that Giang also used her false payroll numbers to obtain worker’s compensation insurance at lower premium rates.
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. 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 $10,000 and restitution. 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 Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.