Auto Body Shop Owner Sentenced for Tax Fraud

BOSTON – The owner of Everett and Worcester auto body shops was sentenced today in federal court in Worcester in connection with a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.   

Adam Haddad, 43, of Shrewsbury, was sentenced by U.S District Court Judge Timothy S. Hillman to eight months in prison, one year of supervised release and ordered to pay restitution in the amount of $292,231. In September 2020, Haddad pleaded guilty to three counts of aiding the preparation of false tax returns.

For tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.