A Sicklerville, New Jersey man has admitted to conspiring to defraud the IRS by concealing cash wages paid to employees. Acting U.S. Attorney Vikas Khanna announced that Chung “Alex” Lam, 46, pleaded guilty before U.S. District Judge Edward S. Kiel to one count of conspiracy to defraud the United States.
Court documents and statements reveal that in 2018, Lam had previously pleaded guilty in federal court for failing to pay payroll taxes and served an 18-month prison sentence during parts of 2019 and 2020. After his release, he conspired with owners of various temporary staffing companies to continue defrauding the IRS.
These staffing companies were responsible for collecting and paying payroll taxes on wages paid to temporary workers they provided businesses. Lam received checks intended as payments for labor from these companies and used a commercial check casher to negotiate over $4 million between early 2018 and mid-2023. He kept some of this money for personal use while distributing the rest as cash payments to co-conspirators for worker wages, thus avoiding tax collection.
Additionally, Lam filed false income tax returns that omitted earnings from this scheme, resulting in a tax loss of approximately $628,351.
The charge carries a maximum penalty of five years imprisonment and a fine up to $250,000. Sentencing is set for June 16, 2025.
Acting U.S. Attorney Khanna credited special agents from IRS-Criminal Investigation led by Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to Lam's plea.
Assistant U.S. Attorney Jeffrey Bender represents the government in this case.
Defense counsel is John B. Brennan, Esq., based in Marlton, NJ.
