Tax fraud case against Stoneham business heats up
Published on February 21st, 2001
STONEHAM, MA - A New Hampshire man pleaded guilty to a charge of aiding two Stoneham companies to defraud the Internal Revenue Service (I.R.S.).
United States Attorney Donald K. Stern announced that Robert R. Flood, 46, of 23 Quaker Drive, Derry, New Hampshire, pleaded guilty on Feb. 15 to obstruction of an I.R.S. Audit.
Flood pleaded guilty to an Information filed in Federal District Court in Boston charging him with producing false documents for the purpose of assisting two Stoneham companies to defraud the I.R.S. According to a recitation of evidence at the plea hearing, the owner and operators of Stoneham Towing, Inc. and Bodyworks Company, Inc. asked Flood to create phony sales invoices and to sign false statements which the companies submitted to the I.R.S. during an audit of the companies for tax years 1993-95. Bob Flood’s Service Center is located at 41 Franklin Street.
U.S. District Court Judge Joseph L. Tauro scheduled sentencing for May 15, 2001. Flood faces up to three years in prison and a fine of up to $100,000.
The case has been investigated by the Criminal Investigation Division of the Internal Revenue Service, with assistance from the Insurance Fraud Bureau of Massachusetts. Prosecution by Sterns’ office is being conducted by Assistant U.S. Attorney Victor A. Wild of the Economic Crimes Unit and Special Assistant U.S. Attorney Corey J. Smith of the Tax Division of the Department of Justice.
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