Brown supporters convicted on tax charges

[Demosthenes]

FOR IMMEDIATE RELEASE
Monday, March 30, 2009
http://WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

Rhode Island Machine Shop Owners Convicted of Tax Fraud

WASHINGTON - Bruce Lapierre, of Pascoag, R.I., and Albert Martin and Lorraine Martin, both of Woonsocket, R.I., were convicted of conspiracy to defraud the United States and tax evasion following 2 hours of deliberations and an 8-day trial before Chief Judge Mary M. Lisi in Providence, R.I., the Justice Department and Internal Revenue Service (IRS) announced today.

Lapierre, Albert Martin and Lorraine Martin, who were indicted in June 2008, were each convicted of one count of conspiracy to defraud the United States and two counts of tax evasion for years 2002 and 2003.

According to the indictment and evidence introduced at trial, Lapierre and the Martins used a series of ruses to conceal their income and avoid paying taxes. From 1997 to 2004, Lapierre and Albert Martin operated Classic Machine in Woonsocket. The two men engaged in an elaborate scheme to conceal from the IRS income that they earned through Classic Machine, and thus avoid paying taxes on that income. Rather than open business accounts for depositing business receipts and income, they allegedly used the personal account of Lorraine Martin to conceal business receipts, as well as an anonymous "private" banking service designed to conceal income from the IRS.

The evidence at trial also showed that in order to further conceal their assets and income from the IRS, Lapierre and Albert Martin used multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises and Royal Enterprises, to conduct the machine shop business. The defendants also made extensive use of cash and money orders. For example, they allegedly cashed checks under $10,000 in order to avoid federal Currency Transaction Reports, which are required for currency transactions of $10,000 or more.

According to the indictment and evidence introduced at trial, Bruce Lapierre tried to obstruct an IRS investigation of the machine shop's income by renaming business assets by sending false and frivolous letters to the IRS claiming he was not required to file tax returns or pay taxes, and by directing a financial institution not to comply with an IRS summons for records.

Chief Judge Lisi scheduled sentencing for July 9, 2009. Each defendant faces a maximum of fifteen years in prison and a maximum fine of $750,000 fine.

Acting Assistant Attorney General John A. DiCicco commended the IRS Special Agents who investigated the case, as well as Tax Division trial attorneys John Kane and Jorge Almonte who prosecuted the case.

More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.

[Dezcad]

If memory serves me correctly, Lowell Becraft represented one of the defendants, Lapierre.

Another loss for Becraft.

[LPC]

If memory serves me correctly, Lowell Becraft represented one of the defendants, Lapierre.

I checked the docket and yes, he did (or does).

[Doktor Avalanche]

Only two hours to deliberate? That didn't take long.

I wonder how it is they thought they could own a machine shop and not tip the IRS off to the fact they weren't paying taxes.

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
WEDNESDAY, OCTOBER 7, 2009 (202) 514-2007
http://WWW.JUSTICE.GOV TDD (202) 514-1888
RHODE ISLAND MACHINE SHOP OWNER SENTENCED TO PRISON
FOR TAX CRIMES
WASHINGTON - Bruce Lapierre of Pascoag, R.I., was sentenced to 51 months in prison today for tax evasion and conspiracy to defraud the United States, the Department of Justice and Internal Revenue Service (IRS) announced. Chief Judge Mary M. Lisi of the District of Rhode Island also ordered Lapierre to pay $463,988 in restitution. Judge Lisi ordered that Lapierre to begin serving his sentence on Oct. 28, 2009.
In March 2009, Lapierre and his co-defendants, Albert and Lorraine Martin, were convicted of conspiracy and two counts each of tax evasion. According to the indictment and evidence introduced during the eight-day trial, Lapierre and Albert Martin owned and operated Classic Machine, a Woonsocket, R.I.-based machine shop, from which they earned substantial income.
From 1997 to 2004, the defendants engaged in an elaborate scheme to conceal income from the IRS they earned through Classic Machine, and thus avoid paying taxes on that income. Rather than open business accounts for depositing business receipts and income, they used Lorraine Martin's personal account to conceal business receipts, as well as an anonymous “private” banking service designed to conceal income from the IRS.
The evidence also showed that the defendants, in order to further conceal their assets and income from the IRS, used multiple business names, such as Banner Technologies, Circle Machine, Preferred Enterprises and Royal Enterprises, to conduct the machine shop business. The defendants also made extensive use of cash and money orders. For example, they cashed checks under $10,000 in order to avoid federal Currency Transaction Reports, which are required for currency transactions of $10,000 or more.
According to evidence presented at trial, Lapierre tried to obstruct an IRS investigation of the machine shop's income by renaming business assets, by sending false and frivolous letters to the IRS claiming he was not required to file tax returns or pay taxes, and by directing a financial institution not to comply with an IRS summons for records.
Sentencing for Albert and Lorraine Martin is scheduled for Nov. 18, 2009. Each defendant faces a maximum of fifteen years in prison and a maximum fine of $750,000.
Acting Assistant Attorney General John A. DiCicco commended the IRS Special Agents who investigated the case, as well as Tax Division Trial Attorneys John Kane and Jorge Almonte who prosecuted the case.

[Judge Roy Bean]

. . . as well as an anonymous “private” banking service designed to conceal income from the IRS. . . .

And why, pray tell, is that entity still "anonymous?"

[The Observer]

And why, pray tell, is that entity still "anonymous?"

Maybe to keep that entity from acquiring any more new customers without effort on its part?

[Demosthenes]

. . . as well as an anonymous “private” banking service designed to conceal income from the IRS. . . .

And why, pray tell, is that entity still "anonymous?"

Because they don't want to comment on an ongoing prosecution?

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