Boston-Space Actual Property Developer Sentenced for Tax Evasion | USAO-MA

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

Arnold Martel, 61, was sentenced to two years’ probation by US District Judge George A. O’Toole Jr. The government recommended an 18-month prison sentence and a year’s supervised release. Martel was also ordered to pay the IRS $482,489 in compensation and a $25,000 fine. On May 13, 2021, Martel pleaded guilty to a count of tax evasion.

Martel knowingly shied away from his responsibility to pay a significant portion of his tax obligations on proceeds from a large condominium development that he built and marketed. From around 2014 to 2017, buyers paid Martel’s business the sale price of condos sold. However, for extras and condo upgrades, Martel instructed buyers to pay him personally. Martel then failed to report this additional income to his accountant or to include it as income on his tax returns. In all, Martel personally received more than $1.2 million in condo upgrade payments. For tax years 2014 through 2017, Martel did not report this income on this tax return, resulting in a tax loss of over $482,000.

The announcement was made by United States Attorney Rachael S. Rollins and Boston-based Internal Revenue Service Special Agent in Charge of Criminal Investigation Joleen D. Simpson. Assistant US Attorney David Holcomb of Rollins’ Securities, Financial & Cyber ​​Fraud Unit prosecuted the case.