Gold Scheme: Mattapan Co-Owner Guilty of Tax Fraud

A Boston federal court has seen a guilty plea from Claudio Poles, 78, of Dorchester, co-owner of Mattapan Plumbing and Heating Supply Company, for filing false tax returns in a scheme to use millions of dollars of unreported business receipts to buy gold bars.

Poles has been charged with four counts of filing false tax returns, for which he could face a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000. U.S. District Court Judge Indira Talwani has scheduled his sentencing for August 9, 2024.

Poles allegedly failed to accurately disclose his company’s gross business receipts to its tax preparer, who prepared the company’s tax returns using the false information Poles provided. He then used some of the unreported gross receipts to purchase more than $10 million of gold and silver bars for himself from bullion dealers.

Between 2019 and 2022, Poles falsely and fraudulently reported losses on his individual tax returns and omitted personal income that he received from the business by purchasing the gold and silver bars. To conceal the nature of the purchases he made from the company’s bank accounts, Poles described the purchases, in the memo section of the checks, as being for boilers, materials, and plumbing and heating supplies.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, have made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

The case serves as a stark reminder of the importance of accuracy and transparency in financial reporting. As the investigation reveals, tax evasion and secret gold buying schemes can have severe consequences. The authorities will continue to monitor and prosecute such cases to maintain the integrity of the financial system.