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TWO STONEHAM PLUMBERS SENTENCED FOR TAX VIOLATIONS

WEDNESDAY, JUNE 2, 2010

BOSTON, MA - Two Stoneham men were sentenced today in federal court for conspiracy and filing a false tax return.

United States Attorney Carmen M. Ortiz and Susan Dukes, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation, Boston Field Office, announced today that PAUL T. WALSH, Sr., 72, of Stoneham and JOSEPH G. WALSH, 49, of Stoneham, were sentenced today by U.S. District Judge Rya W. Zobel to three years probation (with six months of home confinement for WALSH, Sr. and six months of home curfew for JOSEPH G. WALSH, both with electronic monitoring), ordered to pay restitution of $213,199.64 jointly within 10 days, and were each ordered separately to pay an additional criminal fine of $40,000, also within 10 days. The defendants each pled guilty on February 24, 2010 to one count of conspiracy to defraud the United States by concealing receipts from their local plumbing business, as well as to filing a false personal tax return.

At the February plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that the WALSHES diverted corporate receipts from their Medford plumbing business, Paul T. Walsh & Sons, Inc., by depositing over $1 million in business receipts into bank accounts that were concealed from the Internal Revenue Service. The WALSHES further concealed the diversion of funds by not recording the related invoices in the company’s QuickBooks or other accounting workpapers. The WALSHES used diverted receipts for their own personal expenditures, then failed to include those diverted proceeds as income on their respective federal income tax returns. In total, WALSH, Sr. failed to report over $500,000 in income for tax years 2002 through 2005, with a total tax avoided of $56,522. JOSEPH G. WALSH failed to report over $700,000 on his tax returns for the same years, with a total tax avoided of $156,677.

The case was investigated by the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.

 


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