PROVIDENCE, R.I. – A Boston-area contractor who frequently traveled to Rhode Island to cash business checks at a check-cashing business as part of a scheme to not report or pay taxes on nearly $2 million in income was sentenced today in U.S. District Court in Providence, announced United States Attorney Zachary A. Cunha.
Richard Karski, 60, owner and operator of K.C.O. Builders, pleaded guilty on October 7, 2021, to attempt to evade or defeat tax.
In pleading guilty, Karski admitted that for tax years 2015 through 2018, he failed to declare any income or pay any taxes on approximately $1,917,658 in business and personal income.
Karski admitted that as part of his scheme, he frequented a Pawtucket, RI, check-cashing business where he cashed checks he received from clients. The income was never reported to the Internal Revenue Service. In total, Karski failed to pay $179,182 in taxes.
At sentencing, U.S. District Court Judge Mary S. McElroy sentenced Karski to two years federal probation and ordered him to pay $179,182 in restitution to the Internal Revenue Service.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by Internal Revenue Service Criminal Investigation.