Boston-area real estate developer convicted of tax evasion | USAO-MA

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BOSTON — A Tewksbury real estate developer was convicted in federal court in Boston yesterday of defrauding the government of more than $480,000 by engaging in a multi-year tax evasion scheme.

Arnold Martel, 61, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to two years probation. The government recommended a sentence of 18 months in prison and one year of probation. Martel was also ordered to pay restitution in the amount of $482,489 to the IRS and a fine of $25,000. On May 13, 2021, Martel pleaded guilty to one count of tax evasion.

Martel deliberately evaded its responsibility to pay a significant portion of its income tax obligations from a large condominium development it built and marketed. From around 2014 to 2017, buyers paid Martel’s company the sale price of condos sold. However, for condo extras and upgrades, Martel asked buyers to pay him personally. Martel then failed to report this additional income to its tax preparer or report it as income on its tax returns. In total, Martel has personally received over $1.2 million in payments for condo improvements. For the 2014 to 2017 tax years, Martel failed to report this income on these tax returns, resulting in a tax loss of over $482,000.

American lawyer Rachael S. Rollins and Joleen D. Simpson, special agent in charge of the criminal investigation of the Internal Revenue Service in Boston, made the announcement. Assistant U.S. Attorney David Holcomb of Rollins’ Securities, Finance and Cyber ​​Fraud Unit prosecuted the case.

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