Medford Business Owner Indicted For $11M In Tax Offenses

MEDFORD, MA — A Medford business owner has been indicted in connection with a tax fraud scheme that resulted in a tax loss of approximately $4.4 million and allegedly making false statements about a fatal workplace accident, according to U.S. Attorney Rachael Rollins.

Mauricio Baiense, 55, the owner and operator of Contract Framing Builders, Inc. (CFB), was indicted on one count of conspiracy to defraud the United States, seven counts of failure to collect and pay over taxes, one count of aiding and assisting in the preparation of a false tax return, and one count of making false statements, Rollins said.

According to the indictment, Baiense was responsible for filing CFB’s quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from the wages of the company’s employees.

From approximately 2013 through 2017, Baiense allegedly facilitated having approximately $11 million worth of checks drawn on CFB’s corporate bank account to purported subcontractors, which were nominee entities controlled by him. Baiense then cashed or directed others to cash the checks at a check cashing business and used the money to operate an “off-the-books” cash payroll for CFB’s employees, Rollins said.

The indictment claims Baiense did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. In addition, it also says he allegedly assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.

Baiense is also accused of making a false statement to federal investigators when questioned under oath at a U.S. Department of Labor Occupational Safety and Health Administration (OSHA) hearing regarding a fatal workplace accident.

Baiense was released on conditions following an initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal on August 8.