CEO John Comeau Sentenced for Tax Fraud Scheme

San Jose – A decade-long tax fraud scheme by a South Bay CEO has culminated in a year and a day prison sentence.

John Comeau, the former chief executive of Vivid Inc., is set to serve time after authorities uncovered his elaborate plot to dodge over $1.1 million in employment taxes.

Court documents reveal that while at the helm of Vivid Inc., a company specializing in metal coating services, Comeau failed to remit Social Security, Medicare, and federal income taxes from employee wages to the IRS. Over nine years, he underreported over $5 million in wages, siphoning funds for his own luxurious lifestyle.

Despite collecting taxes from employees’ paychecks, Comeau directed false quarterly employment tax returns to be filed with the IRS, understating Vivid Inc.’s wages. He also provided some workers with inflated tax forms, while others received forms that underreported their actual earnings, potentially compromising their Social Security benefits.

Instead of fulfilling his tax obligations, Comeau splurged on a $3 million home and luxury vehicles. His lavish spending was funded by the misappropriated funds intended for the IRS.

In addition to his prison term, U.S. District Judge P. Casey Pitts has ordered Comeau to pay $1,153,948 in restitution and serve three years of supervised release.

The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ilham Hosseini and Trial Attorney Mahana Weidler of the Tax Division. United States Attorney Craig H. Missakian, Acting Deputy Assistant Attorney General Karen E. Kelly, and Special Agent in Charge Linda Nguyen of the Justice Department’s Tax Division announced the sentence.