North Providence Dentist Pleads Guilty to Tax Evasion
Failed to report to the IRS, pay taxes on more than $1M in payments to his practice
PROVIDENCE, RI – A North Providence, RI, dentist pleaded guilty in U.S. District Court in Providence on Tuesday to tax evasion, admitting that he diverted and failed to report as much as $1.2 million dollars in payments made to his business, announced United States Attorney Stephen G. Dambruch and Kristina O'Connell, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI).
Appearing before U.S. District Court Chief Judge William E. Smith, Lawrence P. Stephenson, DDS, 72, of Lincoln, RI, whose dental practice is located in North Providence, admitted to the Court that in as early as 2011, he began diverting a portion of his practice’s business receipts by depositing numerous checks from insurance carriers and patients into a personal bank account. An investigation by IRS-CI revealed that Stephenson failed to report approximately $1.2 million dollars paid to his dental practice and deposited elsewhere, thus failing to pay taxes due the IRS.
Over the years Stephenson made significant withdrawals from the personal account, including approximately $530,000 in 2013 and 2014. The funds were transferred to other banks and investment accounts he owned. Some of the funds he withdrew were used to pay personal expenses.
In 2013 alone, Stephenson admitted to underreporting his income to the IRS by more than $320,000.
Stephenson is scheduled to be sentenced on October 12, 2018.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.