Crime & Safety

Jail Time for Tax Scofflaw Contractor

IRS: the owner of a masonry company that did plenty of work in RI cashed $3 million in checks at check cashing businesses to evade taxes.

The owner of a masonry company that did extensive work in Blackstone Valley has been sentenced to a year and a day in jail for tax evasion.

John W. Lippolis, 56, of Blackstone, Mass., pleaded guilty this summer to impeding the Internal Revenue Service by cashing nearly $3 million in checks from his masonry business, JW Masonry, at check cashing services to evade the IRS.

According to the Massachusetts U.S. Attorney’s Office, Lippolis, between 2005 and 2011, ran his masonry business and sometimes worked for his son’s business, JM Masonry Inc. and took paychecks and payment for work performed to check cashing services, avoiding banks.

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His business was operated with cash, his workers were paid in cash, and he asked customers not write checks for more than $10,000 to avoid triggering a bank reporting requirement, according to a Department of Justice news release. In addition, he failed to file tax returns for “many years.”

Lippolis was sentenced Friday by U.S. District Judge Richard G. Stearns. In addition to the prison sentence, Lippolis was ordered to pay $172,759 restitution and will serve a year of supervised release once he’s out of jail.

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The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.

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