Topsfield Attorney John H. Molloy Jr. Sentenced in Tax Fraud Scheme

John H. Molloy Jr., a 53-year-old attorney from Topsfield, Massachusetts, was sentenced yesterday in U.S. District Court in Boston for filing false tax returns over four years. The crime wasn’t a mistake—it was a calculated move to hide nearly a million dollars in income from the IRS. Molloy, who operated law offices in Jamaica Plain and Revere, used client settlement checks as personal piggy banks while lying to accountants and federal authorities.

U.S. District Court Judge George A. O’Toole, Jr. handed down a sentence of one year of probation, $332,019 in restitution to the IRS, a $5,000 fine, and 100 hours of community service. No prison time—but the damage was done. From 2006 to 2009, Molloy funneled settlement funds from auto insurers into his business accounts, then used that money for personal expenses. Every dollar was taxable income. He reported none of it.

Molloy didn’t just forget to file. He actively misled. When accountants asked which funds should be reported, he told them large chunks weren’t income—knowing full well they were. The total hidden haul? $979,341. The tax loss to the government? $332,019. This wasn’t oversight. It was deception with precision.

The attorney built his practice on representing victims of car crashes—people down on their luck, trusting him to fight for their rights. But behind the scenes, Molloy was using their settlements to inflate his lifestyle while starving the IRS. The betrayal cuts deeper because of who he was supposed to be: a licensed advocate for justice, not a crook gaming the system.

The case was brought by United States Attorney Carmen M. Ortiz, with support from the FBI, IRS Criminal Investigation, and the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorney David S. Schumacher prosecuted, peeling back years of financial lies. Molloy pleaded guilty in August 2016 to four counts of filing false tax returns—each count a paper trail of deceit.

Tax fraud might not involve guns or street violence, but it erodes public trust just the same. John H. Molloy Jr. didn’t serve time behind bars, but his reputation is locked up. The sentence sends a message: even lawyers can’t write themselves out of the law.