$1 Million IRS Scam Lands Andover Attorney Behind Bars

BOSTON – In a shocking turn of events, a federal jury has convicted Andover attorney R. David Cohen, 64, of laundering more than $1 million in fraudulently-obtained IRS refund checks.

The scheme, which was uncovered by federal authorities, involved individuals filing fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns.

Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.

Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc.

When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients.

Cohen faces up to 5 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the gross loss or gain from the offense for the charge of conspiracy to convert and receive stolen United States property.

He also faces up to 10 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the gross loss or gain for each count from the offense for the charge of conversion and receipt of United States property.

Cohen’s sentencing is scheduled for April 26, 2016, before U.S. District Court Judge Leo T. Sorokin.

United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.

The case is being prosecuted by S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.

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