BOSTON - Kenneth Scott Alcock, of Westborough, was convicted today in federal court on federal tax charges. Alcock pleaded guilty to conspiracy and three counts of tax evasion before U.S. District Judge F. Dennis Saylor, IV in Worcester.
Alcock is the fourth defendant to plead guilty in this matter. Gary Alcock, Myron Thorick and Gail Thorick pleaded guilty to conspiracy and tax evasion charges on Dec. 9, 2011. Defendants William Scott Dion, Catherine Floyd and Charles Adams are scheduled for trial on March 1, 2012.
At the plea hearing today, the government informed the court that if the matter had proceeded to trial, the evidence would have shown that Alcock failed to file a personal tax return for 15 years beginning in 1990. Between 2000 and 2005, Alcock worked as a self-employed truck driver and engaged in numerous efforts to evade federal taxes. With respect to his personal income taxes, Alcock subscribed to tax fraud schemes to help him conceal his personal income and assets. Specifically, Alcock arranged to have a nominee entity named “Scottco Enterprises” created and routed his income through that nominee entity. He also concealed his finances by placing his income and assets in a private warehouse bank scheme. Unlike a regular bank, the private warehouse bank required no identification and no social security number of its subscribers, and Alcock’s funds were commingled with funds of numerous other subscribers in order to further mask the true ownership. Alcock reported no income and paid no taxes on the money routed through his nominee “Scottco Enterprises” or placed in the private warehouse bank.
The government further stated that evidence would have shown that Alcock joined his brother, Gary Alcock, in efforts to evade payroll taxes owed by his brother’s trucking business operating under the names G&K Trucking Co. and Barkmulch & Loam Co., in Shrewsbury, Mass. When the trucking business accumulated a substantial amount of debt to the IRS for unpaid payroll taxes, Alcock and his brother subscribed to a payroll tax fraud scheme operating under the name Contract America in order to pay employees “off the books” and to conceal those wages from the IRS.
The government informed the court that the tax evasion offenses resulted in a federal tax loss of at least $107,000.
Alcock is scheduled to be sentenced on April 30, 2012. He faces up to five years in prison on the conspiracy count and on each of the three tax evasion counts, to be followed by up to three years of supervised release and fines of up to $250,000 or twice the financial gain to the defendant or loss to the IRS.
United States Attorney Carmen M. Ortiz; John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit and Assistant Chief John N. Kane and Trial Attorney Jeffrey L. Shih of the Justice Department’s Tax Division.