Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against New York Sub-Contracting Company To Enforce Federal Tax Laws

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil injunction complaint in Manhattan federal court alleging that MEDWAY CONSTRUCTION INC. (“MEDWAY”), a construction sub-contracting company, has for years failed to comply with its tax obligations and has interfered with the enforcement of the internal revenue laws.

According to the allegations in the Complaint filed in Manhattan federal court:

MEDWAY has, since at least 2003, engaged in a pattern and practice of ignoring its federal tax obligations to the detriment of the U.S. Treasury. In particular, MEDWAY has incurred more than $1 million in unpaid federal tax liabilities, and has accumulated these liabilities on an ongoing basis since 2003. If left unaddressed, MEDWAY will continue its years-long pattern of failing to pay its taxes. The Complaint seeks to bar MEDWAY from failing to pay future tax liabilities on a timely basis, require it to comply with the internal revenue laws, and become current with all outstanding tax liabilities.

Simultaneously with the filing of the Complaint, the United States filed an Order to Show Cause seeking to temporarily enjoin MEDWAY from continuing to violate or interfere with the enforcement of the internal revenue laws.

Mr. Bharara thanked the Internal Revenue Service for its assistance in the case.

The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney James Nicholas Boeving is in charge of the case.

U.S. v. Medway Construction, Inc. complaint