Grimy Times Exclusive: A Watertown business owner has admitted to a scheme that evaded taxes and workers’ compensation insurance premiums by paying employees in cash.
Richard Moxley, 67, pleaded guilty to one count of tax evasion and one count of mail fraud yesterday in U.S. District Court in Boston. Moxley is the owner and operator of Sparkling Windows, a window and gutter cleaning company based in Watertown.
According to investigators, from 2008 to 2012, Moxley devised and executed a scheme to defraud the Internal Revenue Service and the insurance company providing workers’ compensation insurance for Sparkling’s employees. Moxley filed false tax returns and paid workers ‘under the table’ by bringing client checks to a check casher and paying undocumented workers weekly wages in cash.
This scheme allowed Moxley to conceal a substantial portion of the company’s business revenues and payroll, and file false tax returns, evading a significant portion of federal taxes, and fraudulently reducing the premiums for workers’ compensation insurance owed in connection with the business.
Under the terms of the plea agreement, Moxley faces a sentence of up to 25 years in prison, 3 years of supervised release, and a fine of up to $500,000. The charges of tax evasion provide for a sentence of no greater than 5 years in prison, 3 years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of no greater than 20 years in prison, 3 years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.
Moxley’s sentencing is scheduled for August 17, 2016. United States Attorney Carmen M. Ortiz, Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorney Eve A. Piemonte is prosecuting the case.
Moxley’s actions are a stark reminder of the importance of tax compliance and the consequences of engaging in fraudulent activities. As a business owner, it is essential to prioritize transparency and honesty in all financial dealings.
Related Federal Cases
- Boston Cab Owner Tutunjian Cops to Tax Evasion, Wage Fraud · Massachusetts
- Topsfield Attorney John H. Molloy Jr. Sentenced in Tax Fraud Scheme · Massachusetts
- Lynn Tax Preparer Claudia Carredano Sentenced in $320K Fraud Scheme · Massachusetts
- Massachusetts Woman Pleads Guilty to Bank Fraud Scheme · Massachusetts
- Dracut Attorney John F. Paczkowski Pleads Guilty to Tax Fraud · Massachusetts
Key Facts
- State: Massachusetts
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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