March 11, 2003

STOUGHTON MAN CONVICTED OF TAX EVASION AND MAIL AND WIRE FRAUD

Boston, MA... A Stoughton man who owns a photocopy center in Needham, Massachusetts, pleaded guilty in federal court today to tax evasion and fraud charges involving his conduct in falsely under-reporting the receipts of his business by hundreds of thousands of dollars.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced that MUKUND N. MEHTA, age 55, of 48 Fitzpatrick Street, Stoughton, Massachusetts, pleaded guilty before U.S. District Judge Nancy Gertner to an indictment charging him with sixteen counts of tax evasion and mail and wire fraud.

At the plea hearing, the prosecutor told the Court that had the case proceeded to trial, the evidence would have proven that MEHTA owned and operated a Sir Speedy Printing Center (the "Printing Center") located at 33 Highland Avenue in Needham, Massachusetts. MEHTA operated the Printing Center pursuant to a franchise agreement with Sir Speedy, Inc.

For calendar years 1994, 1995 and 1996, MEHTA falsely understated by more than $600,000 the gross business receipts for the Printing Center that he reported on his federal income tax returns. As a result, MEHTA substantially under reported his taxable income in each of these three years.

In addition, the gross sales figures that MEHTA reported to Sir Speedy for the same three year period understated by an even greater amount the Printing Center's actual gross sales for that time period. Under the terms of his franchise agreement with Sir Speedy, MEHTA was required to pay Sir Speedy royalty and advertising fees equal to seven percent of the Printing Center's gross sales. By understating his actual receipts, MEHTA defrauded Sir Speedy of more than $300,000 in royalty and advertising fees.

Judge Gertner scheduled sentencing for June 9, 2003. MEHTA faces up to 5 years' imprisonment, to be followed by 3 years of supervised release, a fine equivalent to twice the tax loss and restitution to Sir Speedy.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139