IRS Employee Pleads Guilty to Concealing Records in Federal Department of Labor Investigation
Burlington, VT – The Office of the United States Attorney for the District of Vermont stated that Richard Andersen, 46, of Franklin, Vermont, pleaded guilty today in United States District Court in Burlington to a charge of concealing records in a federal Department of Labor Investigation. U.S. District Judge William K. Sessions III released Andersen on conditions pending sentencing, which has been set for November 26, 2012.
On February 2, 2012, a federal grand jury in Burlington returned a four-count indictment charging Andersen with various crimes relating to obstructing a Department of Labor Wage and Hour investigation in early 2011 focused on Andersen's business, a Sears Hometown Store in St. Albans. According to court records, Andersen worked full time for the Internal Revenue Service as an investigator in connection with the IRS's fuel tax program out of Burlington. He was authorized to own the Sears Hometown store outside of his IRS employment. He has been suspended from IRS since the charges were brought. In early 2011, investigators from the Department of Labor in Vermont began an administrative investigation concerning the store's compliance wage and hour regulations. As part of the investigation, the DOL investigators requested and then subpoenaed store records including timecards for employees. Andersen admitted in court that he concealed the existence of store timecards, failing to disclose them during the investigation, which was resolved by DOL in 2011.
Andersen faces up to twenty years of imprisonment and fines of up to $250,000. The actual sentences would be determined by the Court with reference to federal sentencing guidelines.
This case was investigated by the Office of the Treasury Inspector General for Tax Administration and the Internal Revenue Service, Criminal Invesigation Division. "Our law enforcement mission ensures that the Internal Revenue Service maintains the highest standard of employee integrity within the Federal Government," said J. Russell George, Treasury Inspector General for Tax Administration. "This case highlights the importance of federal law enforcement agencies working together to address wrongdoing at every level of government," said IRS Criminal Investigation Chief Richard Weber.
Andersen is represented by Natasha Sen. The prosecutor is First Assistant/Criminal Chief Paul Van de Graaf.