Mauricio Baiense, 57, from Quincy, Massachusetts, was sentenced today in federal court for his role in a tax fraud scheme that resulted in a tax loss of approximately $2.8 million, along with making false statements regarding a fatal workplace accident. U.S. Senior District Court Judge William G. Young sentenced Baiense to 18 months in prison and ordered him to pay $2,824,577.45 in restitution.
Baiense owned and operated Contract Framing Builders Inc. (CFB), a construction business based in Medford, Massachusetts. He was responsible for filing CFB’s quarterly employment tax returns and ensuring that payroll taxes were withheld from employees’ wages and paid to the IRS. However, from 2013 to 2017, Baiense orchestrated a scheme in which he facilitated approximately $11 million worth of checks drawn from CFB’s corporate account to subcontractors that were, in reality, nominee entities controlled by Baiense himself.
Baiense instructed others to cash these checks at a check-cashing business and used the proceeds to fund an “off-the-books” cash payroll for CFB employees. He failed to report the cash wages to the IRS and did not pay employment taxes on these wages. Additionally, Baiense helped prepare at least one fraudulent employment tax return, which understated the actual wages paid to CFB’s employees.
In April 2024, Baiense pleaded guilty to several charges, including conspiracy to defraud the United States, failure to collect and pay taxes, aiding and assisting in the preparation of a false tax return, and making false statements about a fatal workplace accident. His sentencing serves as a reminder of the severe consequences of tax evasion and fraudulent activity.
Baiense’s prison term and restitution order reflect the seriousness of his offenses, and he will be held accountable for his actions that caused significant harm to the tax system and the public.