Projo 7 to 7 News Blog

PROVIDENCE -- A South Kingstown man today pleaded guilty in federal court to income tax evasion for failing to report about $648,000 he earned through his masonry company.

John Wilk, of the town's Wakefield section, admitted using various things to conceal his income, including converting business checks to cash, getting paid personally rather than through the business, and depositing customer checks into his girlfriend's bank account, according to a news release from U.S. Attorney Robert Clark Corrente's office.

Wilk, 48, entered the plea to one count of tax evasion before U.S. District Court Judge Mary M. Lisi in Providence, according to the news release. Maximum penalty is five years' imprisonment and a $100,000 fine.

Wilk is free pending a scheduled Jan. 30 sentencing.

Prosecutor Lee H. Vilker said at the plea hearingthe government could show that Wilk, sole owner of Independent Chimney and Masonry Construction, had his tax returns prepared by professional accountants, who relied on Wilk's company bank statements and ledgers he provided. For the tax years 2002-2005, the returns he filed understated his income by $648,545, the U.S. Attorney's office said, and the IRS calculated the tax loss at $192,594.

The IRS contacted businesses and people who had paid Wilk or his business for services, and agents found that instead of depositing checks, Wilk negotiated the checks and withdrew nearly the entire amount in cash or money orders. The bank statements he provided to his accountants reflected a small portion of the payments he had received.

The U.S. Attorney's office said Wilk also deposited about $84,000 worth of customer checks into bank accounts in his girlfriend's name and failed to disclose those receipts to his accountants.

In 2004, Wilk sent a letter to clients asking that future checks be made out to him personally rather than to the business.

 Tags  Providence South Kingstown tax evasion

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