Date: January 11, 2022 Contact: newsroom@ci.irs.gov BOSTON — A Boxford businessman was charged today and has agreed to plead guilty to defrauding the government of more than $1.45 million by engaging in a multi-year tax evasion scheme and to defrauding a customer by billing him for plumbing services he did not perform. Jared Derrico, aka "Jay," was charged and has agreed to plead guilty to one count of tax evasion and two counts of mail fraud. A plea hearing has not yet been scheduled by the Court. According to the charging documents, for tax years 2015 through 2019, Derrico operated a plumbing business known, variously, as Derrico Services and The Pipe Surgeon. During that time, Derrico allegedly cashed payments from his customers or deposited them into his personal accounts, but did not report this income on this tax returns. It is also alleged that Derrico fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact, did not install the units. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. According to the terms of the plea agreement, Derrico will pay restitution to the IRS and will be required to pay restitution to the victims of the charged scheme to defraud, if accepted by the Court. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston made the announcement today. The United State Postal Inspection Service and the Ipswich Police Department also provided valuable support in the investigation. Assistant U.S. Attorney Kriss Basil of Rollins' Securities, Financial & Cyber Fraud Unit is prosecuting the case.
