A Sicklerville, New Jersey man has been sentenced to 40 months in prison for conspiring to defraud the Internal Revenue Service (IRS). Chung “Alex” Lam, aged 46, admitted guilt before U.S. District Judge Edward S. Kiel and was sentenced in Camden federal court.
Lam’s conviction stems from his involvement with temporary staffing companies to hide cash wages paid to employees, thereby avoiding payroll taxes. This activity occurred after he had already served an 18-month sentence for failing to pay over payroll taxes between parts of 2019 and 2020.
The case details reveal that from the first quarter of 2018 through the second quarter of 2023, Lam negotiated over $4 million in checks using a commercial check casher. He kept part of this money for personal use while distributing the rest among co-conspirators to pay workers in cash, bypassing tax obligations. Additionally, Lam filed false individual income tax returns omitting his earnings from these activities, leading to a tax loss estimated at $628,351.
In addition to his prison term, Lam will serve three years of supervised release following incarceration.
U.S. Attorney Alina Habba credited special agents from IRS-Criminal Investigation under Special Agent Jenifer Piovesan’s direction with conducting the investigation that led to this sentencing. Assistant U.S. Attorney Jeffrey Bender represented the government in this case.
Defense counsel for Lam was John B. Brennan Esq., based in Marlton, NJ.
