BOSTON — A Boxford plumbing contractor was sentenced to more than a year in prison yesterday after engaging in a multi-year scheme to defraud customers by overcharging them and charging them for services he did not rendered and evading his income taxes – defrauding the government of more than $1.45 million.
Jared Derrico, aka “Jay,” 35, was sentenced by U.S. District Court Judge Rya W. Zobel to one year and a day in jail and three years of probation. Derrico was also ordered to forfeit $315,000 in criminal proceeds and pay $1.45 million in restitution to the Internal Revenue Service. The Court postponed the imposition of a fine, pending further proceedings to determine restitution to the victims of Derrico’s fraudulent scheme. On February 1, 2022, Derrico pleaded guilty to one count of tax evasion and two counts of mail fraud.
For the 2015 through 2019 tax years, Derrico operated a plumbing business known as Derrico Services and The Pipe Surgeon. During this time, Derrico routinely overcharged his clients for the plumbing, maintenance, and construction work he performed and charged his clients for work he did not perform at all. Derrico then took payments from his clients or deposited them into his personal accounts and misled his tax preparer about his company’s gross receipts to avoid reporting that income on those tax returns. Derrico also fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact did not install the units. In total, Derrico defrauded at least 11 clients by overcharging for his services or charging for services he did not perform.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, special agent in charge of criminal investigation for the Internal Revenue Service in Boston; and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service, made the announcement. The United States Postal Inspection Service and the Ipswich Police Department also provided valuable support to the investigation. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Finance and Cyber Fraud Unit prosecuted the case.