A longtime IRS criminal tax investigation yielded results when a federal grand jury in Springfield, Massachusetts handed down an indictment that could send a golf pro to prison for 20 years.
Massachusetts resident Kevin Kennedy Jr. was paid a base salary of $67,000 per year, along with a profit-sharing agreement, to run two of Springfield’s municipal golf courses. The agreement split profits for greens fees and cart rentals, along with other rentals and pro-shop proceeds. The first sign of trouble came on July 28, 2016 when federal agents conducting an IRS criminal investigation swooped into the pro shop on a busy day of golf. The agents were apparently not there to play.
That visit and similar raids to the home of Mr. Kennedy pointed agents in the direction of two luxury homes being built by a local builder for Mr. Kennedy. As a result, Mr. Kennedy currently faces allegations of tax crimes that include theft of federal funds, money laundering, filing false income tax returns, wire fraud, and other tax crimes.
The narrative proposed by the federal government has Mr. Kennedy embezzling fees owed to the city by diverting payments to his management company. He then underreported revenues to the city of Springfield and used the ill-gotten golf proceeds for personal use—including the two luxury homes. As could be expected, Mr. Kennedy filed a fraudulent tax return that did not report the extra income.
The indictment also pulled in well-known local luxury home builder Kent Pecoy and Sons Construction. Kent Pecoy and his son, Jason Pecoy, face charges of obstructing an IRS investigation by cooking their books, making cash payment to contractors, and depositing funds in less than $10,000 increments to avoid regulatory reporting.
The indictment is the outset of the judicial process for Mr. Kennedy. The 24-count charges against Mr. Kennedy follow tax charges made earlier against Assistant Pro Ryan McDowell who worked for Mr. Kennedy. Mr. McDowell pled guilty to six counts of tax fraud and awaits sentencing.
The charges in this matter are serious. Counsel for Mr. Kennedy states no money was stolen and the problem is a “poorly drafted contract.” Mr. Kennedy and the IRS will have their day in court, unless the parties come to some kind of agreement prior to that time.
Good rule of play if your place of business is raided by the IRS—speak with criminal tax attorney as soon as possible.
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If you or your business face allegations of a criminal tax charge, contact our legal team at Robert J. Fedor Esq., LLC or call 800-579-0997.