Federal authorities said that the owner of a Massachusetts plumbing company would spend more than a year in prison for overbilling customers for work he never did and engaging in a nearly $1.5 million tax evasion scam.
After pleading guilty to one count of tax evasion and two counts of mail fraud in February, plumbing contractor Jared “Jay” Derrico, 35, of the town of Boxford in Essex County, was sentenced to one year and one day in prison, followed by three years of supervised release, according to prosecutors.
Derrico was also sentenced to forfeit $315,000 and pay $1.45 million in restitution to the IRS, in addition to his prison sentence.
“The Court deferred imposing a fine, awaiting additional processes to assess restitution to the victims of Derrico’s fraud scheme,” according to the US Attorney’s Office.
He also allegedly received cash for installing air conditioning units at a property in Boston but did not really install the equipment, according to authorities.
Derrico defrauded at least 11 customers by charging too much for services he didn’t offer or charging too little for services he didn’t provide.
They claim Derrico then received or moved money from his customers into his personal accounts, and that he lied to his tax preparer about his firm’s gross revenues to avoid reporting this income on his tax returns.
According to police, he also allegedly collected money for installing air conditioning units at a residence in Boston but did not really install the equipment.
Derrico ran a plumbing company called Derrico Services or The Pipe Surgeon from 2015 to 2019 until he lost his licence.
Prosecutors said that throughout that time, Derrico habitually overcharged his customers for plumbing, maintenance, and construction work he did not perform, as well as billing them for services he did not do at all.
They claim Derrico then received or transferred money from his customers into his personal accounts, and lied to his tax preparer about his business’ gross revenues to avoid reporting this income on his tax returns.
According to investigators, he also falsely received funds for installing air conditioning units at a property in Boston but did not actually install the equipment.
Derrico scammed at least 11 consumers by overcharging for services he did not provide or charging for services he did not provide.
They allege that Derrico then received or transferred money from his customers into his personal accounts and that he misled his tax preparer about his firm’s gross revenues to avoid reporting this income on his tax filings.
He also allegedly received cash for installing air conditioning units at a property in Boston but did not really install the equipment, according to authorities.
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Derrico defrauded at least 11 customers by charging too much for services he didn’t offer or charging too little for services he didn’t provide.
