TEWKSBURY – On April 9, 2021, the U.S. Attorney’s Office for the Massachusetts District announced that Arnold Martel Sr., 61, of Tewksbury, was accused of defrauding the government with a multi-year tax of more than $ 480,000 by way of an evasive scheme.
For the 2014-2017 tax years, Martel personally received more than $ 1.2 million in payments for upgrades to the Bella Woods condominium his company sold on East Street in Tewksbury, according to the fee collection.
United States v Arnold Martel alleges that buyers of the Bella Woods condominium “paid for extras and upgrades to units, including hardwood floors, additional lighting and improved bathrooms,” through checks paid directly to Martel.
Martel approved checks and deposited or cashed the payments in his personal accounts, but did not report those proceeds on his tax returns, according to the allegations. However, Martel has deducted the cost of building the upgrades on his tax returns according to court records.
According to the federal prosecutor’s office, Martel pleaded guilty to tax evasion on Thursday, May 13th. US District Court judge George A. O’Toole Jr. has set the conviction for September 22, 2021. Martel must appear in person at 2 p.m.
Martel owns A&M Land Corp. and has developed numerous condominiums and apartments in Tewksbury including Bella Woods, Katie Estates, Joan’s Farm Residence, Martel Estates, Frasier Estates, Eagles Landing, Blacksmith Village on Bligh Street and others.
Martel could face up to five years in prison for tax evasion and a fine of at least $ 250,000. He is also required to make a refund to the IRS. The US law firm’s records state: “Tax evasion charges include a prison term of up to five years, a supervised release of up to three years, and a fine of $ 250,000 or double gross profit or loss, as the case may be which amount is higher. “
According to Martel’s plea, “the accused has taken responsibility for his crimes”.
A US attorney’s press release lists acting US attorney Nathaniel R. Mendell and Ramsey E. Covington, assistant special commissioner for the Boston Internal Revenue Service, as an announcement. Assistant US attorney Sara Miron Bloom of Mendell’s Securities, Financial and Cyber Fraud Division is pursuing the case.
