The owner of the business in the region is condemned for tax and fraudulent schemes

Massachusetts plumbing business owner will spend more than a year behind bars for overcharging clients for work he never did and engaging in a tax evasion scheme of nearly $1.5 million, federal authorities said.

Prosecutors said plumbing contractor Jared ‘Jay’ Derrico, 35, of the town of Boxford in Essex County, was sentenced to a year and a day in jail, followed by three years on supervised release after pleading guilty to a tax charge. escape and two counts of mail fraud in February.

In addition to his prison sentence, Derrico was ordered to forfeit $315,000 and pay $1.45 million in restitution to the IRS.

According to the U.S. Attorney’s Office, “the Court deferred the imposition of a fine, pending further proceedings to determine restitution to the victims of Derrico’s fraudulent scheme.”

Between 2015 and 2019, Derrico operated a plumbing business known as Derrico Services or The Pipe Surgeon until he lost his license.

Meanwhile, prosecutors said Derrico routinely overcharged his clients for 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 his tax returns, they said.

He also fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact did not install the units, officials say.

In total, Derrico defrauded at least 11 clients by overcharging for his services or charging for services he did not perform.

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