Mass Tax Fraudster Sentenced to 7 Years
A federal judge in Worcester, Mass., has handed down a stiff sentence to William Scott Dion, a mastermind behind a massive tax fraud scheme that duped the IRS out of millions. Dion, 84 months in prison, will also pay restitution in the amount of $3 million.
Dion and his accomplices, Catherine Floyd and Charles Adams, were convicted of conspiring to defraud the United States through the promotion and use of multiple tax fraud schemes. The trio convinced over 150 individuals to subscribe to their payroll scheme, which paid out $2.5 million in unreported wages and compensation.
The payroll scheme was just one of several illicit operations run by Dion and his cohorts. They also promoted an “underground warehouse banking” scheme, which helped subscribers conceal income and assets from the IRS. The scheme, which operated under three different names, deposited over $28 million in funds into various bank accounts.
Four other individuals, including Gail and Myron Thorick and Gary Alcock, have already pleaded guilty to their roles in the scheme. They are awaiting sentencing. The investigation and prosecution of the case was a collaborative effort between the IRS and the Justice Department.
The scheme was uncovered after a federal jury convicted Dion, Floyd, and Adams in April 2012. The convictions were the result of a lengthy investigation that followed a tip from a confidential informant.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, praised the efforts of the special agents of IRS – Criminal Investigation who investigated the case. “This sentence sends a strong message to those who would seek to defraud the government: we will catch you and we will hold you accountable,” she said.
The case serves as a reminder of the importance of tax compliance and the consequences of failing to report income. The Justice Department and IRS will continue to work together to root out tax evasion and other financial crimes.
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