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Massachusetts Businessman Sentenced to Prison for Tax Evasion
BOSTON, MA – A federal judge in Boston has sentenced Gary Alcock, a Westborough, Mass. resident, to 14 months in prison for tax evasion, conspiring to defraud the United States, and willfully failing to file tax returns.
U.S. District Judge F. Dennis Saylor also ordered Alcock to pay restitution in the amount of $515,518. Alcock pleaded guilty to the charges on Dec. 9, 2011, and provided substantial assistance to the government in prosecuting the case against the remaining defendants, which Judge Saylor cited, among other factors, as a basis for a reduced sentence.
Alcock, who owned and operated a trash hauling business called G&K Trucking, as well as a landscaping business called Bark, Mulch and Loam in Shrewsbury, Mass., employed the banking and nominee services of William Scott Dion, Catherine Floyd, and Charles Adams to set up a nominee company called “Alex Management” to divert and hide business receipts.
Between 2001 and 2004, Alcock used the services of Contract America, run by Adams, Dion, and Floyd, in order to pay his employees “under the table” without withholding and paying over Social Security, Medicare, and income taxes.
Alcock was a subscriber to the services of Dion, Floyd, and Adams, and testified at a trial of three defendants which resulted in guilty verdicts rendered by a federal jury on April 2, 2012. The jury convicted Adams, as well as Dion and Floyd, for conspiracies to defraud the United States through the promotion and use of multiple tax fraud schemes.
Judge Saylor previously sentenced Dion to seven years in prison, Floyd to five years in prison, and Adams to four years in prison for promoting these schemes. In related cases, Gail and Myron Thorick of West Warwick, R.I. pleaded guilty to conspiring to defraud the United States by helping operate the “warehouse banking” scheme, and for filing false tax returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts, commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case. Tax Division Assistant Chief John N. Kane, former Tax Division Trial Attorney Jeffrey Shih, and Assistant U.S. Attorney Victor A. Wild prosecuted the case.
RELATED: California Businessman Nets $6.12M in Penny Stock Scam
RELATED: Colombian Businessman Sentenced to 40 Months for Money Laundering Conspiracy
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release ↗
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