Nahant Couple Charged in Superseding Indictment with Tax Fraud
BOSTON – A Nahant couple was charged yesterday in federal court in Boston with two counts of tax evasion.
Gary P. DeCicco, 60, and Pamela M. Avedisian, 55, were charged in a superseding indictment with one count of conspiracy to commit tax fraud and one count of evasion of payment of taxes. The original indictment returned in January 2018 charged DeCicco and Avedisian with conspiracy to commit wire fraud and one count of wire fraud. DeCicco was also charged with one count of conspiracy to commit bank fraud, one count of bank fraud, four counts of wire fraud and attempted wire fraud and six counts of engaging in unlawful monetary transactions.
According to the charging documents, between April 2012 and February 2013, DeCicco repeatedly told the IRS that he did not have the ability to pay his over $340,000 liability, and that he had very little cash, no vehicles or real property, and no ownership interest in any asset with a positive value. However, the indictment alleges that DeCicco had ownership interests in several businesses, vehicles, and real properties during that time period, titled in his name and the names of Avedisian, Lynnway Auto Sales Inc., and other entities in order to conceal those assets from the IRS. In addition, beginning in March 2013, after the IRS accepted DeCicco’s proposed monthly payment plan (based on the false information DeCicco provided about his assets and income), DeCicco allegedly bought and sold numerous real properties, boats and high end cars, and concealed those assets and his income from the IRS, often with Avedisian’s assistance.
According to court documents, Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian allegedly conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt. In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationships from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property. In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.
The indictment also alleges that from November 2015 to September 2016, DeCicco and a co-conspirator falsified rent rolls and prepared fake leases, which they then provided to financial institutions in support of their applications for a $5.5 million loan secured by a commercial building in Peabody. Between September 2016 and January 2017, DeCicco allegedly committed unlawful monetary transactions with the proceeds of the bank fraud scheme, and between February and December 2016, DeCicco engaged in a scheme to defraud multiple insurance companies using fake invoices and other documents to support his claims.
The charges of wire fraud and conspiracy, as well as bank fraud and conspiracy, provide for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and attempted wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of engaging in unlawful monetary transactions provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to defraud the United States and tax evasion each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and, Kristian O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.