November 10, 2004

FORMER PEMBROKE RESIDENT CONVICTED
OF FILING FALSE TAX RETURNS

Boston, MA... A former Pembroke resident pleaded guilty yesterday afternoon in federal court to filing false tax returns.

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 DALE E. MATHENY, age 42, formerly of 21 Congress Street, Pembroke, Massachusetts and currently of Sedalia, Missouri, pleaded guilty before Chief U.S. District Judge William G. Young to an Information charging him with three counts of filing false tax returns and one count of failure to file returns.

At the plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that MATHENY owned and operated a Pembroke business known as Dale’s Professional Painting Service, which performed interior and exterior painting services for residential and commercial customers. MATHENY’s business generated over $100,000 in gross receipts in 1997, approximately $150,000 in 1998, $200,000 in 1999 and nearly $350,000 in 2000.

The evidence further would have established that MATHENY filed no federal income tax return for 1997. He reported none of the gross receipts or income generated by his business in that year. Although MATHENY filed returns for 1998 and 1999, in each of those years he reported as income only W-2 wages that he had received in connection with a second job that he held. He did not disclose on either return the existence of his painting business or the gross receipts generated by that business. MATHENY’s 2000 return disclosed for the first time the existence of his painting business. However, MATHENY reported only a small amount of the receipts that his business actually had generated in that year.

Over the four-year time period encompassed by the indictment, the total amount of the gross business receipts that MATHENY received in connection with his painting business but that he did not report to the IRS was in excess of $750,000. As a result of his failure to disclose or report this income, MATHENY willfully made and filed with the IRS false and fraudulent U.S. Individual Income Tax Returns for each of the years 1998, 1999 and 2000. He also willfully failed to file a tax return for the year 1997.

Chief Judge Young scheduled sentencing for January 5, 2005. MATHENY faces up to 3 years’ imprisonment, to be followed by 3 years of supervised release, and a fine of up to $250,000.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan’s Economic Crimes Unit.

Press Contact: Christina DiIorio-Sterling, (617) 748-3356