Salem Man Pleads Guilty to Tax Evasion

           CONCORD- Blake Ruggiero, 44, of Salem, New Hampshire, pleaded guilty in federal court to tax fraud, United States Attorney Scott W. Murray announced today.

           According to court documents and statements made in court, since 1994, the defendant has owned and operated Romano’s Pizza in Salem, New Hampshire. The defendant paid a substantial portion of wages to Romano’s employees in cash and failed to declare these wages to the Internal Revenue Service in order to reduce his tax liability.  The defendant kept multiple sets of books that were seized as part of a search warrant.  These documents showed the amounts that the defendant paid in cash but did not report.   As a result of the defendant’s conduct, between 2011 and 2016, the defendant failed to pay to the IRS $621,614.88 of employment-related taxes.     

           Ruggiero is scheduled to be sentenced on March 4, 2019.

          "All citizens have an obligation to comply with the federal tax laws,” said U.S. Attorney Murray.  “When business owners fraudulently avoid their tax obligations, they violate federal law and face potential federal prosecution.” 

          "Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS," said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office.  "The failure to pay over withholding taxes is a serious offense.  Employment tax fraud can also impact employees, who may see future Social Security and Medicare benefits reduced or eliminated due to their employers’ criminal conduct."

          This matter was investigated by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Seth Aframe.           

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