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Boston Accountant Carey Accused of $594K Tax Dodge
BOSTON – James Carey, 49, owner of Boston forensic accounting firm Carey & Company, is facing federal tax fraud charges following his arrest today, according to a statement released by the Department of Justice. The indictment alleges Carey pilfered nearly $600,000 and then stiffed the IRS.
Carey & Company allegedly managed bank accounts for multiple insurance companies, acting as a conduit for funds between insurers and their clients. The feds claim that in November 2009, a customer deposited $594,217 into a Carey & Company account intended for an insurance company. Instead of forwarding the money, the indictment states Carey allegedly began siphoning off the funds for personal use.
The alleged scheme didn’t stop at the theft. Prosecutors say the misappropriated $594,217 constituted taxable income, which Carey failed to report on his U.S. Individual Income Tax (Form 1040) and U.S. Income Tax Returns for S Corporations (Form 1120S) for both 2009 and 2010. A certified public accountant accused of dodging taxes – the irony isn’t lost on investigators.
If convicted, Carey faces a potential sentence of up to three years in prison, followed by one year of supervised release, and a hefty $100,000 fine. However, prosecutors noted that actual sentences for federal crimes often fall below the maximum penalties, and will be determined by a federal district court judge based on U.S. Sentencing Guidelines and other factors.
The case is being spearheaded by U.S. Attorney Carmen M. Ortiz and Joel Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston. Assistant U.S. Attorney Stephen Heymann, of Ortiz’s Economic Crimes Unit, is handling the prosecution. The government stresses that the indictment contains allegations only, and Carey is presumed innocent until proven guilty beyond a reasonable doubt.
Grimy Times will continue to follow this case as it unfolds. Carey’s next court date has not yet been announced. This is just the latest in a string of financial crimes hitting the Boston area, raising questions about oversight and accountability within the local accounting industry.
Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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