Paul F. Pytko, Tax Evasion, Rhode Island 2014

PROVIDENCE, R.I. – In a shocking turn of events, Paul F. Pytko, 49, the owner of Pytko Construction Corp. in North Smithfield, R.I., has pleaded guilty to participating in a conspiracy to conceal the sale of company assets worth over $611,000. The scheme was designed to evade payments of taxes to the tune of $1,035,547.91, which Pytko owed to the IRS.

Pytko, a cunning businessman, had agreed to sell several large pieces of construction equipment, including a backhoe, front end loader, screening machine, bulldozer, roller, two excavators, and a rock crusher. The assets were sold between June 7, 2007, and July 10, 2008, for a total of $611,420. However, instead of paying the IRS, Pytko wired the proceeds into third-party accounts and used the funds for business expenses and personal use.

The evidence presented to the court revealed that Pytko’s actions were a brazen attempt to defraud the United States by evading payments of taxes. The plea deal has sent shockwaves through the business community, highlighting the severity of tax evasion and the consequences of such actions.

Pytko is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 19, 2014. The statutory penalty for conspiracy to evade taxes is up to 5 years in federal prison and a fine of up to $250,000. Tax evasion is punishable by a statutory penalty of 5 years in federal prison and a fine of up to $100,000.

The case was investigated by IRS Criminal Investigation and the FBI, with the assistance of Assistant U.S. Attorney Richard W. Rose and Assistant U.S. Attorney John P. McAdams.

The guilty plea is a significant victory for the U.S. Attorney’s Office, demonstrating their commitment to holding individuals accountable for tax evasion and other white-collar crimes. The case serves as a reminder that tax evasion will not be tolerated and that those who engage in such activities will face severe consequences.

The sentencing of Pytko is a crucial step in bringing closure to this case. The verdict will send a strong message to the community that tax evasion will not be tolerated and that those who engage in such activities will face the full force of the law.

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