United States Department of Justice
Michael J. Sullivan U.S. Attorney District of Massachusetts |
United States Attorney's Office
John Joseph Moakley U.S. Courthouse 1 Courthouse Way, Suite 9200 Boston, MA 02210 Press Office: (617) 748-3139 |
January 28, 2003
QUINCY CONTRACTORS
CONVICTED OF TAX EVASION
Boston, MA... Two contractors who own a Quincy-based asphalt paving and road construction company pleaded guilty late yesterday in federal court to tax evasion.
United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge, of the U.S. Internal Revenue Service, Criminal Investigation, announced that FRANK F. DERBES and ROBERT H. DERBES, both of Quincy, Massachusetts, pleaded guilty before U.S. District Judge Richard G. Stearns to an Information charging each defendant with six counts of tax evasion.
At the plea hearing, the prosecutor told the Court that had
the case proceeded to trial, the evidence would have proven that FRANK and
ROBERT DERBES are shareholders and employees of Derbes Brothers, Inc., a Quincy-based
company engaged in the business of asphalt paving and road construction. For
tax years 1995, 1996 and 1997, FRANK and ROBERT DERBES understated, by approximately
$469,000, the business receipts reported by Derbes Brothers, Inc. on its U.S.
Corporation Income Tax Returns. During the same time period, FRANK and ROBERT
DERBES also caused the company to claim and deduct approximately $665,000
in false business expenses.
As a result of the foregoing conduct, FRANK and ROBERT DERBES caused Derbes
Brothers' corporate tax returns to substantially understate the company's
actual taxable income and the amount of tax due and owing. Through the same
conduct, FRANK and ROBERT DERBES likewise caused their respective U.S. Individual
Income Tax Returns for the years 1995, 1996 and 1997 to understate their personal
taxable income and the amount of tax due and owing.
Judge Stearns scheduled sentencing for April 29, 2003. FRANK and ROBERT DERBES each face up to 5 years' imprisonment, to be followed by 3 years of supervised release, and a fine equivalent to twice the tax loss.
The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.
Press Contact: Samantha Martin, (617) 748-3139
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