The United States Attorney's Office

District of Massachusetts
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January 31, 2007

PRESS RELEASE

TWO CAPE COD MEN SENTENCED FOR TAX EVASION CONSPIRACY

Boston, MA... Two Dennis men were sentenced today in federal court for conspiracy to commit tax evasion and tax evasion arising out of a scheme to defraud the government at West Harwich Sunoco.

United States Attorney Michael J. Sullivan and Douglas A. Bricker , Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation in New England, announced today that THOMAS P. STILLSON, age 51, and STEPHEN A. TWOMBLY, age 64, were sentenced by U.S. District Judge George A. O’Toole. STILLSON was sentenced to a term of imprisonment of 6 months and a $3,000 fine and TWOMBLY was sentenced to a term of imprisonment of 4 months and a $2,000 fine. Both were also sentenced to 2 years of supervised release to follow their respective terms of imprisonment.

STILLSON and TWOMBLY previously pleaded guilty on October 4, 2006, each to one count of conspiracy to commit tax evasion and three counts of tax evasion. At the earlier plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the Government’s evidence would have proven that commencing at a time prior to June, 1991 and continuing to approximately July, 2002, STILLSON and TWOMBLY and others participated in an extensive conspiracy led by co-defendant and station owner Edward Varjabedian to under-report income generated by West Harwich Sunoco by, among other things, skimming cash and hiding proceeds. The total amount of tax loss as a result of the scheme exceeded $300,000.

Mr. Varjabedian died prior to trial which had been scheduled in September, 2006. A third co-defendant, William Macker, has also pleaded guilty and awaits sentencing. The remaining co-defendant, Diana Varjabedian, is scheduled for trial in April, 2007.

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

Press Contact: Samantha Martin, (617) 748-3139