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Press Release

Rumford Man Pleads Guilty to Employment Tax Evasion

For Immediate Release
U.S. Attorney's Office, District of Maine

PORTLAND, Maine:  A Rumford man pleaded guilty today in U.S. District Court in Portland to willfully evading the payment of employment taxes.

According to court records, between 2013 and 2017, Jeffrey Richard, 48, willfully attempted to evade payment of employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite being aware of the company’s unpaid employment tax liability, Richard took a variety of steps to evade payment. He regularly used funds from Black Bear’s business bank account to make business and personal purchases, all while making no payments toward Black Bear’s tax liability. He also created two nominee companies and took steps to disguise his ownership of the companies. He falsely represented to an IRS revenue officer that he had anything to do with one of the companies. The other company did business and had over $174,000 of business income in 2017, but none of the money was used to pay the IRS. Richard never informed the IRS about the company, and the company never filed any corporate or employment tax returns.

Richard faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS Criminal Investigation investigated the case.



Craig M. Wolff, Assistant United States Attorney (207-780-3257)

Updated July 17, 2023

Financial Fraud