Barrington Businessman Indicted for Defrauding 9 Local Businesses
Wednesday, June 18, 2014
A federal grand jury in Providence has indicted Warren Hebert of Barrington on 8 counts of wire fraud and 1 count of impeding the administration of the Internal Revenue Code, United States Attorney Peter F. Neronha and IRS Criminal Investigation Special Agent William P. Offord announced.
The 66-year-old Hebert is the owner of Checkmaster Payroll Service. The indictment alleges that Hebert devised a scheme to defraud at least 9 businesses and the Seekonk, Mass Water District of federal taxes that were to be paid to the IRS.
Allegations from Indictment
According to the indictment, beginning in at least April 2009, and continuing through at least October 2011, Hebert allegedly diverted money from at least nine businesses operating in Rhode Island and Massachusetts.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe indictment alleges that Hebert withdrew funds from client accounts that were to have been used to pay the clients’ federal employment taxes and diverted the funds for other purposes.
It is alleged that Hebert provided clients with “client copy” tax returns indicating that the taxes had been paid to the IRS, when they had not.
It is also alleged that Hebert falsely represented to his clients that tax delinquency notices they received from the IRS were the result of administrative errors by the IRS.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
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