Kenneth Marston, Tax Fraud Scheme, Massachusetts 2024

A $1 million tax fraud scheme has been exposed in Massachusetts, with a local business owner facing potential prison time and a hefty fine.

Kenneth Marston, 67, of Hanson, Massachusetts, pleaded guilty on October 4, 2024, to a tax fraud scheme in which he willfully failed to pay employment taxes for his two businesses.

From 2015 through 2018, Marston owned and operated two businesses: Bowmar Steel Industries, Inc., which engaged in steel fabrication and Teleconstructors, Inc., which provided installation services on cellular phone towers.

During that time, Marston falsely treated his employees as if they were independent contractors and, in turn, failed to withhold employment taxes on over $3.8 million in combined wages.

As a result, Marston avoided reporting and paying $1 million in employment taxes owed to the Internal Revenue Service.

The charge of failure to pay over taxes provides for a sentence of up to 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.

Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Trial Attorney Mark McDonald of the Justice Department’s Tax Division are prosecuting the case.

Kenneth Marston, Real full name: Kenneth Marston, exact criminal charges: Failure to collect and pay over employment taxes, City and state: Boston, Massachusetts, EXACT DATE with month/day/year: October 4, 2024, Sentence or outcome: Up to five years in prison, fine of $250,000 or twice the gross gain or loss, whichever is greater, and three years of supervised release, Dollar amounts where applicable: $3.8 million in combined wages, $1 million in employment taxes owed to the Internal Revenue Service.

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