Hopkinton Entrepreneur Dariusz Pietron’s $1.1M Tax Heist Exposed

A brazen scheme to evade taxes and deceive insurance companies has landed Hopkinton’s Dariusz Pietron, 51, in hot water. This week, the construction entrepreneur pleaded guilty to three counts of failure to collect and pay over employment taxes to the IRS and one count of mail fraud.

Between 2012 and October 2018, Pietron owned and operated TJM Construction, Inc. (TJM) and Point Construction, Inc. (Point). But instead of playing by the rules, he deliberately underreported employee wages to the IRS, failed to withhold required employment taxes, and refused to pay employment taxes he owed. He also misled Travelers Insurance Company about the actual wages he paid to employees, resulting in lower workers’ compensation insurance premiums.

As part of the elaborate ruse, Pietron recruited and paid two employees to set up three shell companies. These fake companies made it seem as though TJM and Point’s employees were subcontractors, eliminating Pietron’s tax obligations. But the scam backfired, leaving the IRS and Travelers Insurance out $1.35 million.

The charge of failure to pay over taxes carries a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Mail fraud, on the other hand, comes with a maximum sentence of 20 years in prison, at least three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Pietron has also agreed to pay restitution to the IRS and Travelers Insurance and to forfeit $244,000.

Acting United States Attorney Joshua S. Levy, Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office, and Katherine Mulligan, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts, announced the plea today. Assistant United States Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is handling the case.

The sentencing is scheduled for August 28, 2024, before U.S. District Judge Indira Talwani. With Pietron’s guilty plea, he is set to face the music for his elaborate scheme to cheat the system and line his pockets with ill-gotten gains.