Temp agency owner hides $6M in cash

+AI agents screen candidates & fraud epidemic spreads

Author

Keith Weightman
August 04, 2025

Signal Summary: A Massachusetts temp agency owner just got busted for the oldest trick in the book, Adecco's AI agents are working overtime shifts, fake candidates are destroying agencies faster than a bad Yelp review, and sometimes the hardest hiring conversations are about deodorant.

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All pictures hand-drawn with an iPad Pro, Apple Pencil, and the app Procreate.

HERE’S WHAT HAPPENED LAST WEEK ↓

SIGNAL 1
Cash-only temp agency owner learns federal prison isn't remote work

The scoop: Henry Lam thought he cracked the code on temp staffing: pay everyone in cash, dodge the IRS, profit. Turns out the only thing he cracked was federal law.

The damage:

  • Avoided $2.4 million in payroll taxes by operating like a neighborhood lemonade stand

  • Used fake payroll numbers to get cheaper workers' comp insurance (because why stop at one fraud?)

  • Cashed client checks at check-cashing businesses instead of banks (subtle as a neon sign)

Reality check: HL Temporary Services in Lowell served Massachusetts companies who probably thought they were working with a legitimate operation, not someone treating payroll like a drug deal.

Signal → Strategy: Outsource payroll - let professionals handle the math so you don't accidentally commit felonies.

SIGNAL 2
Adecco's AI agents pull all-nighters so recruiters don't have to

Breaking: Adecco just deployed Salesforce's Agentforce AI across their UK operations, and it's working graveyard shifts. The AI handles pre-screening while recruiters sleep, delivering hot leads every morning like a caffeinated intern.

The wins:

  • 28 companies successfully filled vacancies using AI-powered screening

  • 57% of candidate conversations happened outside business hours

  • 4.6 out of 5 satisfaction rating from candidates who chatted with robots

The strategy: Free up recruiters for "quality engagement" while AI handles the grunt work. Translation: humans do the relationship building, robots do the data crunching.

Signal → Strategy: Investigate AI agent platforms before competitors automate you out of business. Position as "human-enhanced" rather than "AI-replaced" to calm client fears.

SIGNAL 3
Fake candidates are destroying agencies faster than bad reviews

The threat: AI-powered fraudsters are gaming the entire hiring playbook. Fake resumes, synthetic identities, and coached interviews are turning staffing into a game of whack-a-mole with professional con artists.

Why agencies are sitting ducks:

  • High-volume recruiting overwhelms traditional screening methods

  • Speed-to-fill pressure creates verification shortcuts

  • One bad placement destroys client relationships permanently

The disconnect: Agencies process hundreds of candidates monthly while fraudsters only need to fool you once. They understand your business model better than you think.

Signal → Strategy: Implement same-day reference checks using LinkedIn to cross-verify connections. Flag candidates whose references have zero mutual connections or recent profile creation dates. Grab more tips below ⬇️ 

RECRUITING CONFESSIONAL
When honesty about hygiene saved the hire

Recruiting Confessional A weekly series featuring anonymous stories from recruiting and staffing professionals. Submit yours here.

The Setup: Six months into recruiting, specializing in .NET roles. Finally found the perfect developer for an impossibly picky client - technical skills were flawless, experience was spot-on.

The Plot Twist: Candidate thought they nailed the interview. Client feedback call revealed the real issue: "some problems" turned out to be code for overwhelmingly strong body odor. Client was willing to hire them with one non-negotiable condition.

The Awkward Conversation: Had to explain to a talented developer that their dream job hinged on "the importance of regular hygiene."

The Happy Ending: Candidate appreciated the feedback, slapped on some Old Spice, and got the job.

Have a story? Submit it here

SHARE THE SIGNALS
3 people you should share these signals with:

  • Your compliance officer who thinks cash payments are "just easier"

  • Your tech-resistant colleague who believes AI will never replace human intuition

  • That agency owner who's been burned by fake candidates