Bruce Lapierre, Tax Evasion, Rhode Island 2009

In a crushing blow to those who think they can cheat the system, Bruce Lapierre of Pascoag, Rhode Island, has been sentenced to 51 months in prison for tax evasion and conspiracy to defraud the United States. The sentence, handed down by Chief Judge Mary M. Lisi of the District of Rhode Island, also includes a hefty price tag of $463,988 in restitution.

Lapierre, the owner of Classic Machine, a Woonsocket, Rhode Island-based machine shop, was found guilty of conspiracy and two counts each of tax evasion, along with his co-defendants, Albert and Lorraine Martin. The trio’s elaborate scheme to conceal income from the IRS and avoid paying taxes on that income spanned from 1997 to 2004.

According to the indictment and evidence presented during the eight-day trial, Lapierre and Albert Martin used a variety of methods to conceal their income, including using Lorraine Martin’s personal account to deposit business receipts and using an anonymous ‘private’ banking service designed to conceal income from the IRS. They also created multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises, and Royal Enterprises, to conduct the machine shop business.

Furthermore, the defendants made extensive use of cash and money orders to avoid detection. For example, they cashed checks under $10,000 to avoid federal Currency Transaction Reports, which are required for currency transactions of $10,000 or more. This brazen attempt to evade the law ultimately led to the trio’s downfall.

Lapierre’s attempts to obstruct an IRS investigation were also a key factor in his conviction. He tried to rename business assets, sent false and frivolous letters to the IRS, and even directed a financial institution not to comply with an IRS summons for records. These actions only served to further incriminate him and his co-defendants.

As Lapierre begins serving his sentence on October 28, 2009, his co-defendants, Albert and Lorraine Martin, await sentencing on November 18, 2009. Each defendant faces a maximum of 15 years in prison and a maximum fine of $750,000.

In a statement, Acting Assistant Attorney General John A. DiCicco commended the IRS Special Agents who investigated the case, as well as Tax Division Trial Attorneys John Kane and Jorge Almonte who prosecuted the case.

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