Feds charge owner of Quincy temp agency with hiding payroll money

Fred Hanson, The Patriot Ledger
·2 min read

BOSTON − A Randolph woman who ran a temporary-employment agency in Quincy has been arraigned on federal charges that she hid more than $3.2 million in payroll to avoid taxes.

Lilian Giang, 53, was arraigned Friday in U.S. District Court in Boston on charges of mail fraud and failure to collect and pay taxes. She was released subject to conditions by U.S. District Court Magistrate Judge Donald L. Cabell. Giang had been indicted on the charges by a federal grand jury.

Between 2015 and 2019, Giang owned and operated Able Temp Agency, which served client companies in Massachusetts, court records show. The clients paid Able Temp Agency for the temporary employees' work on an hourly basis.

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Giang deposited those payments into bank accounts in the name of Able Temp Agency that she controlled and then paid the employees through a combination of checks and cash, according to court documents.

Prosecutors allege that by using cash, Giang hid more than $3.2 million in payroll and avoided paying $815,000 in required payroll taxes. They also allege that Giang used her false payroll numbers to obtain worker's compensation insurance at a lower cost.

The charge of mail fraud carries 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; and restitution and forfeiture.

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The charge of failure to collect or pay taxes carries a sentence of up to five years in prison, three years of supervised release, a fine of $10,000 and restitution.

The charges were announced by U.S. Attorney Rachael S. Rollins and Joleen D. Simpson, special agent in charge of criminal investigations for the Internal Revenue Service in Boston. Assistant U.S. Attorney Christopher J. Markham is prosecuting the case.

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Reach Fred Hanson at fhanson@patriotledger.com.

This article originally appeared on The Patriot Ledger: Feds say owner of Quincy temp agency hid millions