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|Woman Pleads Guilty to Tax and Bank Fraud|
|Written by Administrator|
|Sunday, 15 April 2001 12:50|
A Lake Shore Drive resident pled guilty in Federal Court on April 2 to tax and bank fraud charges. U.S. Attorney Donald K. Stern, Special Agent in charge of the U.S. Internal Revenue Service Criminal Investigation in New England Michael Lahey, and Special Agent in Charge of the Treasury Inspector General for Tax Administration Michael Delgado announce that Maureen E. Allen, 35, of 45 Lake Shore Drive pled guilty before U.S. District Court Judge Richard G. Stearns to a two-count information charging her with filing false payroll tax returns in 1995 and 1996, and with submitting a false tax return to Fleet Bank in connection with a loan application.
At the change of plea hearing on April 2, Federal Prosecutor Jeanne Kempthorne told the court that Allen was the proprietor of a landscaping business in Quincy known as M. Allen Landscaping Inc. and during the relevant period of time, employed between 10 and 15 employees. The employees believed that Allen was withholding payroll taxes when in fact she made no payments to the IRS. Allen filed quarterly payroll reporting forms with the IRS falsely indicating that she had made payroll tax deposits.
The bank fraud charge stems from a 1993 loan application to Fleet Bank in support of which Allen submitted a fraudulent federal tax return which inflated her gross receipts for 1992.
Judge Sterns scheduled sentencing for July 9. On the fax fraud count, Allen faces a maximum sentence of three yearsâ€™ imprisonment to be followed by one year of supervised release, and a $250,000 fine. On the bank fraud count, Allen faces 30 yearsâ€™ imprisonment to be followed by five years of supervised release, a $1 million fine, and restitution.
The investigation leading to the charges in this case was conducted by Special Agents for the U.S. Internal Revenue Service, Criminal Investigation, and the Treasury Inspector General for Tax Administration, and by Assistant U.S. Attorneys Stephen G. Huggard, Chief of Sternâ€™s Public Corruption and Special Prosecutions Unit. The case is being prosecuted by Assistant U.S. Attorney Jeanne Kempthorne of Sternâ€™s Economic Crimes Unit.