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Bangor Man Sentenced for Tax Fraud
December 20, 2011
AUGUSTA – Attorney General William J. Schneider announced that Andrew Murphy, Sr., 49, of Bangor, was sentenced today to serve five months in jail for 14 counts of tax fraud, including theft of withholding tax, intentional tax evasion, failure to pay over withholding tax, and making false statements in tax returns.
Murphy committed the crimes in connection with the operation of his fuel oil and trucking delivery businesses, under the names of A.J Murphy, Inc., Hudson Road Holding Company, and Heaten Oil Company. He pleaded guilty in August of this year following an investigation covering 2005 through 2010. During this time period Murphy repeatedly reported to Maine Revenue Services that he had no employees, when in fact he had several. Moreover, Murphy stole the withholding taxes that he withheld from his employees’ wages, rather than pay over the taxes to Maine Revenue Services.
Penobscot County District Court Judge Bruce Jordan sentenced Murphy to three years of incarceration with all but five months suspended, and three years of probation. Murphy was ordered to pay back $65,713 in restitution, which represents the withholding taxes which were stolen, along with unpaid corporate, sales, and personal income tax.
“Businesses are entrusted with the collection of state taxes and must not divert these taxes for personal enrichment,” said Attorney General Schneider. “Maine citizens rely upon businesses to be honest collectors of their tax monies. We will continue to work with Maine Revenue Services to pursue and prosecute anyone who attempts to steal tax money or defraud the state.”
This case was investigated by the Maine Revenue Services’ Criminal Investigations Unit. Assistant Attorney General Gregg D. Bernstein handled this matter for Attorney General Schneider’s Financial Crimes and Civil Rights Division.