Friday, September 12, 2014

Former Big Dig chief admits income tax cheating

Former Big Dig chief admits income tax cheating

By Gintautus Dumcius STATE HOUSE NEWS SERVICE

BOSTON — Former Big Dig chief James Kerasiotes pleaded guilty in federal court Thursday to underreporting his income.

Appearing before Judge William Young in U.S. District Court in Boston, the 60-year-old Kerasiotes was released on personal recognizance after he entered his guilty plea.

Young asked him if he knew he was underreporting income. "Yes," Kerasiotes said.

Kerasiotes, who lives in Wrentham, was represented by former Gov. William Weld, a lawyer at Mintz Levin, and defense attorney Juliane Balliro.

Kerasiotes served as secretary of transportation under Weld and the late Gov. Paul Cellucci, as well as chairman of the now-defunct Massachusetts Turnpike Authority. He was accused of mismanagement of the Big Dig as the Boston highway project's price tag kept climbing, and he eventually resigned.


In July, he was charged by federal prosecutors with filing false income tax returns for 2010 and 2011, when he was self-employed as a consultant.

U.S. Attorney Carmen Ortiz's office alleged that he filed forms that included just a portion of income earned from his consulting business, and evaded income taxes.

Kristina Barclay, who works in Ortiz's public corruption unit, told the judge that because Kerasiotes was pleading guilty, Ortiz's office agreed to not charge him with mail fraud.

Before Kerasiotes entered his plea, Judge Young disclosed that he and Weld knew each other through another judge, and that more than 30 years ago, when Weld was a U.S. attorney, Weld recommended Young to President Ronald Reagan for the bench.

Young said Weld was appearing before him for the first time and he did not believe his impartiality was compromised. But, Young added, either side could privately inform the court's clerk of any concerns.

Neither side appeared to raise an issue with Young presiding.

Kerasiotes could face between 10 and 16 months in prison, though his lawyers have requested probation instead. The U.S. Attorney's Office said it wanted to see the pre-sentencing report before making a sentencing recommendation.

A sentencing date was set for Dec. 10 at 2 p.m.

Kerasiotes's lawyers and Ortiz's office still disagree over the total loss to taxpayers as a result of his underreporting of income. Weld said the loss is less than $30,000, while the government alleges that the total exceeds that figure.

The matter, which could affect the length of his sentence, will be hashed out before Young at a Nov. 21 hearing that is expected to last an afternoon.

2 comments:

  1. Why is it that these people can get away with so much ? If that was you or me, we would have been in jail years ago !! Charlie Housin who owned Baldwinville Products and Erving Paper, was able to walk away from the agreement with the town of Templeton leaving our little town to pay the freight on the sewer treatment plant's repair and downsizing. This is one of the big reasons our town has not been able to recover financially. Why couldn't we recover the cost to get our town back on track ? Big money and political connections with one of the largest law firms in Boston pulling the strings is the answer to that question. I do have faith that the good guys win once in a while and wrong doings do not go away, so I will not give up, and neither should you. My opinion based on the truth. Bev.

    ReplyDelete
  2. The tax system is fraudulent , by its design, simply put it needs to be replace compleatly null and void soup to nuts alone with the same old ideals and people doing the same attachments to same the people will be bankrupt and two will bt taxation ruin everyone , but we will have the so called town .
    There presently running backward to reenstate every town need back up to it late great over ride 3 coming at you then 4 then 5 ect,,,

    ReplyDelete