A Massachusetts man, Mauricio Baiense, was sentenced to 18 months in prison for committing serious tax crimes and making a false statement during a federal investigation. Baiense, who once owned a construction business in Medford, was convicted for running an illegal payroll system that helped him avoid paying taxes and for lying under oath about a fatal workplace accident involving one of his employees.
Operating an “Off-the-Books” Payroll System
Mauricio Baiense was the owner of Contract Framing Builders Inc. (CFB), a construction company based in Medford, Massachusetts. As the company’s owner, Baiense was responsible for paying employment taxes on the wages of his employees and filing accurate tax returns. However, from around 2013 to 2017, Baiense carried out a scheme where he used checks drawn on his company’s bank account, which appeared to be for subcontractors. In reality, these payments went to fake companies controlled by him.
Baiense then arranged for these checks to be cashed at check-cashing establishments. The money he received was used to pay employees in cash, which he did not report to the IRS. This meant that Baiense was paying his workers under the table and failing to pay the required taxes on these wages. The total amount of tax loss caused by Baiense’s actions was approximately $2.8 million.
Additionally, Baiense assisted in preparing fraudulent tax returns that underreported the actual wages paid to employees, further minimizing the taxes owed. By using this “off-the-books” payroll system, Baiense was able to avoid paying a large sum in taxes, which ultimately cost the U.S. government millions of dollars.
Lying Under Oath During Federal Investigation
In addition to his tax crimes, Mauricio Baiense also lied under oath during a federal investigation conducted by the Occupational Safety and Health Administration (OSHA). The investigation was focused on a tragic workplace accident in which one of Baiense’s employees died. During an interview, Baiense falsely claimed that the deceased employee had never worked for him, misleading federal investigators who were trying to understand the details of the accident.
Mauricio Baiense’s $11 million Off-the-Books Payroll Scandal
Lying to federal investigators is a serious offense, and Baiense was caught making these false statements while under oath. His actions not only misled the authorities but also delayed the investigation into the fatal accident. This was yet another illegal act that added to the severity of the charges against him.
Consequences and Restitution
Due to his criminal actions, Mauricio Baiense was sentenced to 18 months in prison. In addition to his prison sentence, Baiense was ordered to repay approximately $2.8 million to the IRS to compensate for the tax losses resulting from his fraudulent activities. This money will be used to help recover some of the financial damage that Baiense’s tax scheme caused to the U.S. government.
Once Mauricio Baiense has served his prison sentence, he will also face three years of supervised release, which means he will be closely monitored by authorities and must follow certain rules and conditions. His sentence was a direct consequence of his deliberate efforts to cheat the tax system and lie to federal investigators.
The investigation that led to Mauricio Baiense’s arrest was carried out by several government agencies, including the IRS, OSHA, and the Department of Labor. These agencies worked together to gather evidence and build a strong case against Baiense for his illegal activities.
Mauricio Baiense’s case demonstrates the serious consequences of trying to cheat the system. His actions not only caused a significant loss to the IRS but also interfered with an important federal investigation. This case serves as a reminder that dishonesty in business can lead to severe penalties, including jail time and financial restitution.
