Tewksbury Developer Sentenced To Probation For Tax Evasion

TEWKSBURY, MA — A Tewksbury real estate developer was sentenced Wednesday to two years of probation as well as over $500,000 in fines and restitution for a tax evasion charge he pleaded guilty to last year.

Arnold Martel, 61, defrauded the government of more than $480,000 through a multi-year tax evasion scheme, federal prosecutors said. He pleaded guilty to one count of tax evasion in May 2021.

Prosecutors recommended an 18-month prison sentence, but District Court Judge George A. O'Toole Jr. opted for two years probation as well as $482,489 in restitution to the IRS and a fine of $25,000 for Martel.

According to prosecutors, Martel evaded a large portion of his tax obligations on income from a condo development he built and marketed.

"From approximately 2014 through 2017, buyers paid Martel’s business the sales price for condos sold," prosecutors said. "For extras and upgrades to the condos, however, Martel directed buyers to pay him personally. Martel then failed to report this additional income to his tax preparer or report it as income on his tax returns."

In total, he personally received over $1.2 million for condo upgrades, resulting in a tax loss of over $482,000 from 2014 to 2017, prosecutors said.

In total, Martel personally received more than $1.2 million in payments for condo upgrades. For tax years 2014 through 2017, Martel did not report this income on this tax returns resulting in a tax loss of over $482,000.

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.