Jump to Navigation
Over 30 Years of Experience handling tax controversies & tax disputes

Worcester federal jury convicts three for IRS fraud, conspiracy

Three people, including a Norwood man, were sentenced in Worcester federal district court for conspiracies to defraud the U.S. using several tax fraud schemes. Released wearing electronic monitoring devices, they are awaiting sentencing in June. All three were found guilty of participating in an "under the table" payroll scam and the use of "underground warehouse banking." Both charges are defined by conspiracy and fraud and were used to hide income and assets from the Internal Revenue Service. The Norwood man was also convicted of tax evasion.

Evidence presented described tax crimes including a plan to pay participating employees without following proper accounting or tax withholding procedures. Under their scheme, they helped nearly 150 people avoid paying employer and individual payroll taxes to the tune of more than $2.5 million in unreported compensation and wages. Additional evidence described the scheme that they ran and promoted allowing people to conceal assets and income from the IRS. They were able to do so by maintaining several accounts at different banking locations where they would comingle receipts from the participants to hide the true ownership of the funds. Both schemes were funded by participants who subscribed to their services under at least six different business names.

The three defendants were indicted back in 2009 with four others who already pleaded guilty and are also awaiting sentencing. Each faces up to five years for each count of conspiracy and fraud followed by supervised released for three years. Their fines may be as high as $250,000 or twice whatever they gained or denied the IRS.

Source: Norwood Patch, "Norwood Man Convicted of Conspiracy to Defraud the IRS," April 3, 2012

No Comments

Leave a comment
Comment Information
Have a Question? Ask an Attorney:

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Our
Tax Law Website
Contact Information

Levins Tax Law, LLC
1671 Worcester Road, Suite 304
Framingham, MA 01701

Framingham Law Office Map

Levins Tax Law, LLC
38 Newbury Street, 6th Floor
Boston, MA 02116

Boston Law Office Map
By Appointment Only

Phone: 508-435-0118
Toll-Free: 888-333-9501
Fax: 888-333-0291