Quincy Contractor Sentenced to 18 Months for Multi-Million Dollar Tax Fraud and Obstruction of Justice
BOSTON – Mauricio Baiense, a 57-year-old Quincy resident, was sentenced Tuesday to 18 months in federal prison for orchestrating a complex tax fraud scheme that defrauded the U.S. government of millions of dollars. Baiense, the owner of Medford-based construction company Contract Framing Builders Inc. (CFB), also received a one-year term of supervised release and was ordered to pay $2.8 million in restitution. The sentencing follows Baiense’s guilty plea in April to a litany of charges, including conspiracy to defraud the United States, failure to collect and pay taxes, aiding in the preparation of a false tax return, and making false statements.
The elaborate scheme, which spanned several years, involved funneling approximately $11 million through a network of shell subcontractors controlled by Baiense. Instead of properly reporting wages and paying employment taxes, Baiense directed associates to cash checks drawn from CFB’s account at check-cashing businesses. These funds were then used to pay employees "under the table," effectively creating an off-the-books payroll system that allowed Baiense to evade significant tax liabilities. This deliberate circumvention of tax laws resulted in a substantial loss of revenue for the federal government.
Baiense’s deceptive practices extended beyond tax evasion. He further compounded his legal troubles by obstructing a federal investigation into a worker’s death at his company. When questioned by investigators from the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA), Baiense falsely denied that the deceased individual had ever been employed by CFB. This blatant attempt to mislead authorities added another layer of criminality to his actions.
The sentencing marks the culmination of a thorough investigation by federal authorities, which began with a grand jury indictment in August 2022. The investigation uncovered a pattern of deceptive financial maneuvers designed to conceal the true nature of Baiense’s payroll practices and avoid paying employment taxes. The prosecution successfully argued that Baiense’s actions were not only illegal but also demonstrated a calculated disregard for the law and the welfare of his employees.
The case serves as a stark reminder of the consequences of tax fraud and the importance of maintaining accurate payroll records. The IRS and other federal agencies are committed to pursuing individuals and businesses who engage in such schemes. The substantial financial penalty and prison sentence imposed on Baiense reflect the seriousness with which these offenses are viewed by the justice system. Beyond the financial implications, the case underscores the ethical and moral obligations of employers to operate within the bounds of the law and prioritize the safety and well-being of their employees.
The successful prosecution of Baiense sends a clear message that tax evasion and obstruction of justice will not be tolerated. The 18-month prison sentence, coupled with the significant restitution order, serves as a deterrent to others who might consider engaging in similar fraudulent activities. The case also highlights the collaborative efforts of various federal agencies, including the IRS, OSHA, and the U.S. Attorney’s Office, in pursuing justice and upholding the integrity of the tax system. The investigation and subsequent prosecution demonstrate a commitment to ensuring that individuals and businesses are held accountable for their actions and that the government’s resources are protected.