A Sicklerville, New Jersey man has admitted to conspiring to defraud the Internal Revenue Service (IRS) by working with others to hide 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 to the IRS, resulting in an 18-month prison sentence served during parts of 2019 and 2020. Before serving his sentence and after his release, Lam conspired with owners of temporary staffing companies to deceive the IRS. These companies were responsible for collecting and paying payroll taxes on wages paid to temporary workers.
Lam received checks as payments for labor provided by employees of these staffing companies. Between early 2018 and mid-2023, he used a commercial check casher to negotiate over $4 million worth of such checks. He retained some cash for personal use while providing the rest to co-conspirators for paying temporary workers in cash, thus avoiding payroll tax collection and payment. Additionally, Lam filed false individual income tax returns omitting income from this conspiracy, leading to a tax loss of approximately $628,351.
The charge carries a maximum penalty of five years in prison 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 under Special Agent in Charge Jenifer L. Piovesan's direction in Newark for their role in the investigation leading to Lam's plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender from the Camden office.
Defense counsel is John B. Brennan, Esq., based in Marlton, NJ.