Lowell father and daughter charged in alleged payroll tax scheme

Lim Ou, 69, and Nalen Ou, 39, were charged with conspiracy and failure to collect and pay over taxes in a federal criminal complaint. Prosecutors allege they operated temporary employment agencies from 2013 onward, supplying workers to manufacturing, packaging, laundry, and other industries. The agencies most recently operated as KHL Inc. and Top Labors Inc. Authorities claim that from 2019 to 2025 the Ous used a Worcester check-cashing business to cash over $57 million from client payments, with more than $48 million used to pay workers in cash without IRS reporting or required employment taxes. They are also accused of failing to pay more than $12 million in federal employment taxes. Both were arrested and are expected to appear in federal court in Boston. Conviction could bring up to five years in prison for each charge, supervised release, fines up to $250,000 or twice the gross gain or loss, and restitution.

"Prosecutors say that between 2019 and 2025, the Ous allegedly used a Worcester-based check-cashing business to cash more than $57 million in payments received from client companies. Of that amount, more than $48 million was allegedly used to pay workers in cash without reporting the wages to the IRS or paying required employment taxes, according to officials."

Read at Boston.com