Source: Office of United States Attorneys
PORTLAND, Maine: A Rumford man was sentenced today in U.S. District Court in Portland for willfully evading the payment of employment taxes.
U.S. District Judge John A. Woodcock, Jr. sentenced Jeffrey Richard, 50, to 12 months and one day in prison followed by three years of supervised release. He was also ordered to pay $910,980.37 in restitution to the IRS. Richard pleaded guilty on July 17, 2023.
According to court records, between 2013 and 2017, Richard willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.
“Today’s sentencing of Jeffrey Richard sends a strong message to all individuals and businesses that think they are above the law and can evade their obligation to pay their fair share of taxes,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Richard knowingly chose to steal and cheat from every America taxpayer when he selfishly chose to use business funds for personal purchases and took other steps to evade paying his tax liability. Tax evasion is not a victimless crime, it impacts every American by stealing resources vital to fund schools, maintain public infrastructure and enhance social welfare.”
IRS Criminal Investigation investigated the case.
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