A 70-year-old man formerly of Quincy was convicted for five counts of tax evasion as well as stealing funds from a federal housing assistance program. The man was also convicted of two counts of conspiracy and two counts of making false statements. The tax evasion convictions and related charges involved two elaborate schemes: one involving a false-invoice scheme and the other Section 8 housing fraud.
The crime began after he was hired as a salesman by Xcel Fire Protection, an indoor sprinkler company. The man told Xcel’s general manager that he owned several businesses, including a trucking company, moving and real estate business and a business equipment company. According to authorities, the man sent false invoices in the names of the companies that he owned to Xcel for goods or services that these businesses had never provided. The general manager authorized the company to pay the invoices by check. In exchange, the man gave the general manager 90 percent of the value of the checks while keeping 10 percent for himself. The man and the general manager did not pay the correct amount of income taxes toward the $490,000 that they received through these transactions.
The man had conducted a similar conspiracy to defraud the IRS by causing $3.3 million to be diverted through the use of false invoices. Again, the man and another co-conspirator did not pay an appropriate amount of income taxes on the money that they acquired through the scheme. Additionally, the man tried to evade paying more income taxes by filing erroneous tax returns that did not accurately reflect his income. He also made false statements to U.S. Department of Housing and Urban Development officials when he applied for housing assistance.
A person who is under suspicion of a tax crime may opt to retain the services of a tax attorney. Taking this step may help someone avoid jail time or a conviction.
Source: Real Estate Rama, Former Quincy Man Pleads Guilty to Tax Evasion Schemes and Theft from Federal Housing Program,” March 11, 2013