Nantucket Painting Business Owner Charged with $2 Million Tax Fraud | USAO-MA

BOSTON – The owner of a commercial and residential real estate paint shop in Nantucket was charged today with an income diversion and wage tax system that resulted in a tax loss of more than $ 2 million.

Durvan C. Lewis, 51, of Nantucket, has been charged and agreed to plead guilty of tax evasion and failure to pay taxes. A hearing is not yet planned.

Lewis owned and operated a painting business called DCL Painting. From 2014 to 2017, Lewis allegedly diverted more than $ 1.5 million of DCL Painting’s gross earnings to his personal bank account and did not report the diverted earnings to his tax advisor. It is also alleged that Lewis paid over $ 5 million in cash “under the table” to DCL Painting employees for the tax quarter ending March 31, 2012 through September 30, 2019. As a result of his conduct, Lewis failed to adequately report his personal income tax obligations and failed to report and pay the employment taxes owed on cash wages to the IRS. Overall, Lewis is said to have caused the IRS a loss of $ 2,084,852.

The fee schedule provides for a term of up to five years in prison, three years’ custody release, and a fine of $ 250,000 or double gross profit or loss, whichever is greater. Sentences are passed by a federal district judge based on U.S. sentencing guidelines and other legal factors.

United States attorney Andrew Lelling and Ramsey E. Covington, assistant special envoy for the Internal Revenue Service in Boston, announced today. U.S. Assistant Attorney James R. Drabick of Lelling’s Securities, Financial & Cyber ​​Fraud Unit is pursuing the case.

Comments are closed.