Boxford Plumbing Company Owner Charged with Tax Evasion and Mail Fraud | USAO-MA

BOSTON — A Boxford businessman was charged today and has agreed to plead guilty to defrauding the government of more than $1.45 million by participating in a multi-year tax evasion scheme and defrauding a client by billed him for plumbing work not performed.

Jared Derrico, aka “Jay”, 35, has been indicted and has agreed to plead guilty to one count of tax evasion and two counts of mail fraud. An oral hearing has not yet been scheduled by the court.

According to the accounting documents, for the 2015 through 2019 tax years, Derrico operated a plumbing business known variously as Derrico Services and The Pipe Surgeon. During this time, Derrico allegedly cashed payments from his clients or deposited into his personal accounts, but did not report that income on this tax return. It is also alleged that Derrico fraudulently received payment to install air conditioning at a Boston property but did not install the units.

The tax evasion charge carries a sentence of up to five years in prison, supervised release of up to three years, and a fine of $250,000 or double gross profits or losses, whichever is greater. The charges of mail fraud carry a term of imprisonment of up to 20 years, supervised release of up to three years, and a fine of $250,000 or double gross profits or losses, whichever is greater. Under the terms of the plea agreement, Derrico will pay compensation to the IRS and will be obligated to pay compensation to victims of the accused scheme of fraud if the court accepts it. The verdicts are handed down by a federal district court judge based on US sentencing guidelines and other legal factors.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in charge of the Boston Criminal Investigation of the Internal Revenue Service, announced today. The United State Postal Inspection Service and the Ipswich Police Department also provided valuable assistance in the investigation. Assistant US Attorney Kriss Basil of Rollins’ Securities, Financial and Cyber ​​Fraud Unit is prosecuting the case.

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