Pittsburgh Resident Indicted for Fraud and Conspiracy to Maliciously Destroy East Carson Street Property by Fire
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to five years probation, the first three months to be served at a Community Corrections Center and the following six months to be served in home confinement, on his conviction of willfully failing to file an income tax return, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on William J. Dugan, Jr.
According to information presented to the court, on or before Sept. 15, 2006, Dugan, formerly the Vice President, Secretary and Treasurer of Dugan’s Residential Care, Inc., a business which operated six residential care facilities for mentally handicapped adults in Allegheny and Butler Counties, and based in Cheswick, Pennsylvania, failed to file a corporate income tax return for the calendar year 2005, as required by law, resulting in a tax loss to the Internal Revenue Service of $128,706. Dugan and his estranged wife, Maureen Dugan, the CEO and Executive Director of Dugan's Residential Care, Inc., failed to file both corporate and personal tax returns for the years 2003 to 2006, resulting in a total loss of approximately $320,000. Maureen Dugan previously entered a plea of guilty to a similar charge and was sentenced to serve a five-year term of probation.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Dugan.