Durvan C. Lewis, $2 Million Income & Payroll Tax Fraud Scheme, Massachusetts 2021

BOSTON – In a shocking display of financial mismanagement, Durvan C. Lewis, 51, of Nantucket, has been sentenced to two years in prison for his role in a $2 million income and payroll tax fraud scheme.

Lewis, the owner of DCL Painting, a commercial and residential painting business on Nantucket, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to two years in prison, two years of supervised release and a fine of $10,000. Lewis was also ordered to pay $2,084,852 in restitution to the IRS.

According to court documents, Lewis pleaded guilty to one count of tax evasion and one count of failure to pay over taxes. The scheme, which spanned from 2014 through 2017, involved Lewis diverting over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failing to report the diverted receipts to his tax preparer.

In addition, Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table” during the tax quarters ending March 31, 2012 through Sept. 30, 2019. This resulted in Lewis underreporting his personal income tax obligations, as well as failing to report and pay over to the IRS the employment taxes owed on the cash wages.

As a result of his conduct, Lewis caused a loss to the IRS of $2,084,852. The case was prosecuted by Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement.

Defendant/Respondent: Durvan C. Lewis

Criminal Charges: Tax evasion and failure to pay over taxes

City and State: Nantucket, Massachusetts

Exact Date: Not Available (sentencing date)

Sentence or Outcome: Two years in prison, two years of supervised release, a fine of $10,000, and $2,084,852 in restitution to the IRS

Dollar Amounts: $2,084,852 (tax loss), $1.5 million (diverted gross receipts), $5 million (cash wages)

Source: https://www.justice.gov/usao-ma/pr/nantucket-painting-business-owner-sentenced-2-million-income-payroll-tax-fraud-scheme