Workers’ Comp Premium Evasion: Clinton Man Sentenced for Employment Tax Fraud and False Statements
Juliano Fernandes, a Clinton-based businessman, has been sentenced for a series of fraudulent activities that spanned several years and multiple charges. On December 18, 2024, Fernandes was sentenced to 12 months of home confinement and five years of probation. He was also ordered to pay $1,450,031 in restitution.
Fernandes pleaded guilty to eleven counts of employment tax fraud, two counts of mail fraud, and two counts of making false statements to a federal agency. His sentencing highlights the severe consequences of payroll and workers’ compensation fraud.
Key Facts of the Case
Employment Tax Fraud: Between 2015 and 2017, Fernandes exercised financial control over two Massachusetts-based construction companies, Force Corporation and AB Construction. During this time, he willfully failed to account for and pay employment taxes to the IRS.
Workers’ Compensation Insurance Fraud: From April 2013 through January 2017, Fernandes defrauded workers’ compensation insurers by misrepresenting both the number of employees at his companies and their wages.
False Statements to Federal Authorities: In August 2017, Fernandes provided materially false statements to the U.S. Department of Labor about the value of his property in Lunenburg, Massachusetts. He also falsely claimed he never had control over payroll at Force Corporation, hindering efforts to collect funds related to civil wage violations.
Involvement of Anderson Dos Santos
Anderson Dos Santos, an employee of AB Construction, was also implicated in related fraud activities. Dos Santos pleaded guilty to four counts of filing false tax returns for the years 2013, 2014, 2016, and 2017. He materially underreported his income during this time and was sentenced in May 2024 to three years of probation.
The Financial and Legal Impact
Fernandes’ fraudulent actions caused significant financial harm, prompting authorities to impose restitution exceeding $1.45 million. His sentence, including home confinement and probation, reflects the serious nature of his offenses, including tax evasion and insurance fraud.
The Importance of Compliance
This case serves as a warning to businesses about the consequences of defrauding tax and insurance systems. Accurate employee and wage reporting, along with transparency in dealings with federal authorities, is critical to maintaining trust and avoiding legal repercussions.
Final Thoughts
Workers’ compensation premium evasion and employment tax fraud undermine the integrity of the system and hurt businesses and employees alike. Companies are urged to prioritize compliance and seek professional guidance to avoid similar outcomes.
