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Justice News

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Friday, February 14, 2014

Former Lab Executive Sentenced For Tax-Related Crimes

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BOSTON – The former chief operating officer of a Woburn drug testing laboratory was sentenced yesterday for federal tax related crimes.

U.S. District Court Judge George A. O’Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. In 2013, Cavanaugh pleaded guilty to four counts of subscribing to false tax returns for the tax years 2005 through 2008.

Cavanaugh, the former chief operating officer of Calloway Laboratories, Inc., a urine drug testing company in Woburn, Mass., filed false federal income tax returns for tax years 2005 through 2008, by substantially underreporting his income during those tax years. During that period, while employed at Calloway, Cavanaugh received payments, in the form of checks and cash, from JAC Resources, Inc., a straw company that Cavanaugh owned and controlled, but failed to report the income on his federal income tax returns.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Philip Coyne, Special Agent in Charge of the Health and Human Services, Office of Inspector General, Office of Investigations; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sonya Rao and Amanda Strachan.