Stoughton Man Sentenced for Tax Evasion and Mail and Wire Fraud, Reports U.S. Attorney.
United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that MUKUND N. MEHTA, age 57, of 48 Fitzpatrick Street, Stoughton, Massachusetts, was sentenced by U.S. District Judge Nancy Gertner to 3 years' probation, the first 6 months of which are to be served in home detention. The Court further ordered that MEHTA perform 200 hours of community service and pay $269,827 in restitution and a $20,000 fine.
On March 11, 2003, MEHTA pleaded guilty to an indictment charging him with sixteen counts of tax evasion and mail and wire fraud. At the plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that MEHTA owned and operated a Sir Speedy Printing Center (the "Printing Center") located at 33 Highland Avenue in Needham, Massachusetts. MEHTA operated the Printing Center pursuant to a franchise agreement with Sir Speedy, Inc.
For calendar years 1994, 1995 and 1996, MEHTA falsely understated by more than $600,000 the gross business receipts for the Printing Center that he reported on his federal income tax returns. As a result, MEHTA substantially under-reported his taxable income in each of these three years.
In addition, the gross sales figures that MEHTA reported to Sir Speedy for the same three year period understated by an even greater amount the Printing Center's actual gross sales for that time period. Under the terms of his franchise agreement with Sir Speedy, MEHTA was required to pay Sir Speedy royalty and advertising fees equal to seven percent of the Printing Center's gross sales. By understating his actual receipts, MEHTA defrauded Sir Speedy of these fees. The Court ordered MEHTA to pay Sir Speedy $269,827 in restitution for this fraudulent scheme.
The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and was prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.
CONTACT: Samantha Martin of U.S. Attorney, +1-617-748-3139
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|Date:||Aug 1, 2003|
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