Construction Firm Owner Sentenced For $2 Million Tax Evasion, Lying To Osha

A Massachusetts building business proprietor was sentenced to 18 months successful situation for an employment taxation strategy and making a mendacious connection astatine an Occupational Safety and Health Administration (OSHA) proceeding astir a worker’s death.

According to tribunal documents, Mauricio Baiense, formerly of Quincy, owned and operated Contract Framing Builders Inc. (CFB), a Medford, Massachusetts, building business. From astir 2013 done 2017, Baiense had astir $11 cardinal worthy of checks drawn connected CFB’s firm slope relationship to purported subcontractors, which were successful truth entities that he controlled. The purported subcontractors included Strong Carpentry, Erlando Carpentry, JBV Construction, HRB Builders and Trust Builders, according to nan July 2022 indictment.

Baiense past directed others to rate nan checks astatine a cheque cashing business and utilized nan money to run an “off-the-books” rate payroll for CFB’s employees. Baiense did not study nan rate wages to nan IRS and did not salary employment taxes connected wages paid to labor successful cash. Baiense besides assisted successful nan mentation of astatine slightest 1 fraudulent employment taxation return that understated nan existent wages paid to CFB’s employees.

Also, erstwhile questioned successful 2017 nether oath astatine an OSHA question and reply regarding a fatal workplace mishap pertaining to an employee, Baiense falsely claimed to a national interrogator that nan deceased worker did not activity for him but for different company, which was JBV that he controlled. According to OSHA files, connected April 13, 2017, nan worker who was moving connected an elevated aboveground fell and struck nan actual floor. The worker was killed arsenic a consequence of a traumatic encephalon injury.

In total, prosecutors said Baiense caused a taxation nonaccomplishment to nan IRS of astir $2,824,577.45.

In summation to his situation sentence, U.S. District Judge William G. Young for nan District of Massachusetts ordered Baiense to service 3 years of supervised merchandise and to salary astir $2,824,577.45 successful restitution to nan United States. He is to study to situation connected January 21.2025.

Topics Workers' Compensation Construction