FOR IMMEDIATE RELEASE
TUESDAY, OCTOBER 20, 2009
WWW.USDOJ.GOV/USAO/MA
CONTACT: CHRISTINA DiIORIO-STERLING
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NORTH ANDOVER MAN SENTENCED FOR FILING FALSE TAX RETURN
BOSTON, MA - A North Andover man was sentenced today in federal court for filing a false tax return and avoiding the payment of over $200,000 in federal taxes owing.
Acting United States Attorney Michael K. Loucks and Susan Dukes, Special Agent in Charge of the Internal Revenue Service Criminal Investigation - Boston Field Division, announced today that FRANK T. DEMAIO, age 48, of 197 Ingalls Street, North Andover, MA, was sentenced by U.S. District Judge Rya W. Zobel to six months imprisonment, to be followed by one year of supervised release, and to pay $222,000 in restitution during his term of supervision. DEMAIO pleaded guilty to one count of filing a false tax return on July 22, 2009.
At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that as the owner and operator of Second Federal Mortgage, a mortgage brokerage business, DEMAIO failed to report business gross receipts totaling approximately $745,000 during tax years 2002-2005, thereby avoiding paying about $222,000 in federal taxes owing. In the charged year of 2003, for example, DEMAIO’s return stated total taxable income of $43,352 when in fact he had total taxable income of at least $200,227 that year. During the same time as he was filing false tax returns and not reporting all of his income, DEMAIO purchased a nearly $900,000 home in North Andover, another property in Florida, a thirty-foot pleasure boat and a boat slip at the Newburyport Yacht Club.
The case was investigated by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Loucks’ Economic Crimes Unit.
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