Massachusetts Couple Arraigned for Tax Evasion

BOSTON, July 20, 2016— A Massachusetts couple accused of evading taxes on more than $2 million in income were arraigned today, Suffolk County District Attorney Daniel F. Conley said.

HARRY WEBSTER (D.O.B. 2/26/62) of Canton was arraigned today in Suffolk Superior Court on six counts of failure to timely file an income tax return, six counts of filing a false tax return, as well as two counts each of larceny over $250 and larceny over $250 by scheme in connection with the theft of funds from his former employer.  NANCY WEBSTER (D.O.B. 2/21/57) of Hyde Park was arraigned counts of filing a false tax return.  Clerk Magistrate Anne Kaczmarek released each defendant on their own recognizance.

Assistant District Attorney Michele Granda, chief of the DA’s Special Prosecutions Unit, told the court that Harry Webster is charged with stealing a total of $403,000 from East Boston steel fabricator Tuckerman Steel, where he worked as general manager until 2011.

During his employment, Webster allegedly received $167,000 in kickbacks from a subcontractor during 2006 and funneled them to Seacoast Engineering & Design, a shell company he controlled.  He additionally caused Tuckerman Steel to issue unauthorized checks to Seacoast Engineering & Design totaling $63,500 during December 2007 and January 2008.  In April 2008, Webster allegedly paid himself an unauthorized bonus of $73,000 and a second unauthorized bonus of $100,000 one month later.

At the time of his employment with the company, Webster and his wife lived in Durham, N.H., and were required to file Massachusetts non-resident tax returns on the income he earned while working in Massachusetts.  However, the couple failed to file Massachusetts tax returns for the years 2006 through 2011.  During those years, Webster earned a total of   $2,278,500 from Tuckerman Steel, for which the Massachusetts Department of Revenue estimated the Websters would owe $116,726 in taxes.

After learning that the state’s Department of Revenue was investigating their alleged tax evasion, Harry and Nancy Webster on May 22, 2013, submitted non-resident tax returns for the years 2006 through 2011.  In those returns, the couple knowingly reported false information to the Department of Revenue, including allegedly phony deductions and false business losses, and failed to report large portions of their income, prosecutors said.  As a result, the Websters reported a tax liability of just $36,962.

Harry Webster was represented by Laurence Cote for bail purposes.  Nancy Webster was represented by Philip Cormier.  They return to court Sept. 26.

 

 

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All defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.