FORMER CERTIFIED PUBLIC ACCOUNTANT SENTENCED FOR TAX EVASION
BOSTON, Mass. - A former certified public accountant was sentenced today in federal court in Springfield for tax evasion and failure to file his federal income tax returns.
GARY P. MALLOWS, 63, formerly of Longmeadow, was sentenced by U.S. District Judge Michael A. Ponsor to 46 months imprisonment, to be followed by 3 years of supervised release and restitution to the Internal Revenue Service of $249,759.
Evidence presented at trial proved that from 2001 to 2007 MALLOWS diverted over $700,000 in income and assets into nominee companies and trusts in order to evade the payment of an $86,000 tax assessment filed against him by the IRS in 2001. For example, MALLOWS created an entity called Innovative Package Design, Inc. (IPD), which he used to conceal income and assets, such as his personal boat. To further conceal his tax fraud, MALLOWS incorporated IPD in his wife’s name. In addition, MALLOWS, acting as an accountant for the Estate of Charles Stroh, wrote more than $450,000 in checks to IPD for MALLOWS’S accounting services. As part of his scheme to evade the payment of the tax assessment, MALLOWS failed to file income tax returns for 2002, 2003 and 2004, even though he earned over $200,000 in each of those years.
United States Attorney Carmen M. Ortiz and William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation - Boston Field Division made the announcement today. It was prosecuted by Tino Lisella, a Trial Attorney with the Department of Justice’s Tax Division and Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
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