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Rhode Island Couple Sentenced to Prison for Filing False Tax Returns and for Conspiracy to Defraud the United States
NOVEMBER 27, 2012

Washington - A federal judge in Boston, Mass., sentenced Gail and Myron Thorick, of West Warwick, R.I., to prison for conspiring to defraud the United States, and for filing false tax returns, the Justice Department and IRS announced. Gail Thorick received seven months in prison followed by 17 months of supervised release with seven months of that time to be served in home confinement, and her husband Myron Thorick received two years probation with the first year to be served in home confinement. United States District Judge F. Dennis Saylor also ordered the Thoricks to each pay restitution in the amount of $595,000 to the IRS. The Thoricks pleaded guilty to the charges on December 9, 2011, and provided substantial assistance to the government in prosecuting the case against the remaining defendants, which the Judge Saylor cited, among other factors, as basis for the reduced sentences.

The Thoricks testified at a trial of three defendants which resulted in guilty verdicts rendered by a federal jury on April 2, 2012. The jury convicted Charles Adams, of Norwood, Mass., as well as Catherine Floyd and William Scott Dion, both of Sanbornville, N.H., for conspiracies to defraud the United States through the promotion and use of multiple tax fraud schemes. The jury convicted all three of conspiracy to defraud the IRS by promoting an “under the table” payroll scheme doing business as Contract America. Dion and Floyd were also convicted for conspiracy to defraud the IRS through the use of an “underground warehouse banking” scheme designed to conceal customer income and assets from the IRS.

According to court documents, the Thoricks participated in the “underground warehouse banking” conspiracy and helped Dion and Floyd execute the scheme. Gail Thorick helped run the day-to-day operations, including the bookkeeping and depositing of checks into commingled bank accounts in nominee names such as “Calico” that helped clients of the scheme conceal income from the IRS. Myron Thorick helped cash hundreds of thousands of dollars in checks to further conceal client income and assets from the IRS. The Thoricks also falsified their own tax returns for the tax years 2003 through 2005.

Following the jury’s guilty verdicts, Judge Saylor sentenced Dion to seven years in prison, Floyd to five years in prison, and Adams to four years in prison. Judge Saylor previously sentenced two additional defendants, brothers Gary and Kenneth Scott Alcock, to 14 months in prison and 12 months in prison, respectively.

Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and Carmen M. Ortiz, United States Attorney for the District of Massachusetts, commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Assistant Chief John N. Kane, former Tax Division Trial Attorney Jeffrey Shih, and Assistant U.S. Attorney Victor A. Wild, who prosecuted the case.

 

 

 

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