William Scott Dion, Tax Fraud, Massachusetts 2012

Grimy Times has learned that a federal judge in Worcester, Massachusetts, has sentenced William Scott Dion to 84 months in prison for conspiring to defraud the United States and obstructing the Internal Revenue Service (IRS).

U.S. District Judge F. Dennis Saylor also ordered Dion to pay restitution in the amount of $3 million.

Dion, along with Catherine Floyd and Charles Adams, was convicted on April 2, 2012, for conspiring to defraud the United States through the promotion and use of multiple tax fraud schemes.

The jury convicted all three defendants of conspiracy to defraud the IRS by promoting an “under the table” payroll scheme. Dion and Floyd were also convicted for conspiracy to defraud the IRS through the use of an “underground warehouse banking” scheme designed to conceal customer income and assets from the IRS.

Floyd and Dion were also convicted separately for corruptly endeavoring to obstruct the IRS’s ability to determine their own income. Adams was separately convicted of tax evasion.

The evidence presented at trial revealed that Dion, Floyd, and Adams ran a payroll tax scheme to pay employees “under the table” without properly accounting for, withholding, and paying over to the IRS the payroll taxes required by law.

The scheme, which operated under three different names – Contract America, Talent Management, and New Way Enterprises – involved approximately 150 individuals and resulted in over $2.5 million in unreported wages and compensation being paid through the system.

The evidence also established that Dion and Floyd conspired to defraud the United States by promoting and operating an “underground warehouse banking” scheme, which helped subscribers conceal income and assets from the IRS.

Catherine Floyd and Charles Adams, both from Massachusetts, were also involved in the scheme. Gail and Myron Thorick of West Warwick, R.I., and Gary Alcock pleaded guilty in August 2009 for their roles in the scheme, while Kenneth Scott Alcock pleaded guilty in January 2012.

Defendant Information: Name – William Scott Dion; Charges – Conspiracy to Defraud the United States, Obstructing the IRS; City and State – Worcester, Massachusetts; Date – April 2, 2012; Sentence – 84 months in prison and restitution of $3 million.

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