Construction Firm Owner Sentenced: A Hopkinton, Massachusetts man received an 18-month prison sentence on Jan. 10, 2025, in federal court in Boston for defrauding the Internal Revenue Service (IRS) and Travelers Insurance Co. over employee wages at his construction firms.
Sentencing and Restitution Orders
According to U.S. Attorney Joshua S. Levy, Dariusz Pietron was sentenced to 18 months in prison, followed by three years of supervised release. He was also ordered to pay $1,107,000 in restitution to the IRS and $244,000 to Travelers Insurance Co.
Guilty Plea and Fraud Details
In May 2024, Pietron pleaded guilty to charges of failing to pay employment taxes to the IRS and committing mail fraud by underreporting workers’ compensation insurance premiums. Construction Firm Owner Sentenced
Between 2012 and October 2018, Pietron owned and operated TJM Construction, Inc. (TJM) and Point Construction, Inc. He failed to report employee wages to the IRS, did not withhold required income taxes, and neglected to pay necessary employment taxes. Additionally, he misrepresented the wages paid to his employees to Travelers, resulting in lower workers’ compensation insurance premiums than owed.
Scheme Involving Shell Companies
Prosecutors revealed that Pietron paid two employees to create three shell companies, making it seem as though TJM and Point’s employees were subcontractors. This setup allowed Pietron to avoid tax and workers’ compensation obligations. Consequently, he evaded over $1.1 million in employment taxes and defrauded Travelers of approximately $244,000.
For more updates on legal and business news, visit Jacobi Journal. For further details, refer to the original article from Business Insurance.