A Rumford resident has been sentenced in U.S. District Court for evading employment taxes. Jeffrey Richard, aged 50, received a sentence of 12 months and one day in prison, followed by three years of supervised release. He is also required to pay $910,980.37 in restitution to the IRS after pleading guilty on July 17, 2023.
Court records reveal that between 2013 and 2017, Richard attempted to evade paying employment withholding taxes owed by his company, Black Bear Industrial, Inc. Despite knowing about the unpaid tax liability, he used funds from the company's bank account for personal and business purchases without addressing the tax debt. Richard established two nominee companies to conceal his ownership and misled an IRS revenue officer regarding his involvement with one of them. The other company earned over $174,000 in business income in 2017 but did not use any funds to settle its IRS obligations or file necessary tax returns.
Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation at the Boston Field Office stated: “Today’s sentencing of Jeffrey Richard sends a strong message to all individuals and businesses that think they are above the law and can evade their obligation to pay their fair share of taxes.” He added that Richard's actions were detrimental as "tax evasion is not a victimless crime; it impacts every American by stealing resources vital to fund schools, maintain public infrastructure and enhance social welfare."
The case was investigated by IRS Criminal Investigation.
