Workers’ Comp Premium Evasion: Construction Company Owner Sentenced for Tax and Mail Fraud
Dariusz Pietron, owner of several construction companies, has been sentenced to 18 months in federal prison and ordered to pay $1,351,856 in restitution. Pietron pleaded guilty on May 14, 2024, to three counts of failure to collect and pay over taxes and one count of mail fraud, concluding a lengthy investigation into his fraudulent business practices.
Details of the Case
Failure to Pay Employment Taxes: Pietron failed to collect and pay over taxes for employees of his construction companies, including TJM Carpentry and Point Construction, from 2014 onward. These actions defrauded the government and circumvented proper payroll tax reporting.
Mail Fraud Related to Workers' Compensation: The case gained attention after a TJM Carpentry employee fell from a forklift basket in 2014, sustaining severe injuries that left him paralyzed. Investigators discovered the injured worker was listed as an employee of a subcontractor, Eddy Construction, Inc., but operated under Pietron’s control, raising questions about employment misrepresentation.
Use of Subcontractor “Shell” Companies: Pietron’s companies, including TJM Carpentry, relied on subcontractors such as Edmilson Construction, Eddy Construction, and CON Construction. Over $2.7 million was funneled to individuals connected to these subcontractors, which were later revealed to be shell companies used to avoid tax and insurance obligations.
Business Reorganization to Avoid Liability: In December 2016, TJM Carpentry ceased operations, but its business activities resumed under Point Construction, Inc., owned by Pietron’s wife since July 2016. Both companies used subcontractor networks to obscure payroll data and evade tax responsibilities.
Sentencing and Restitution
On January 13, 2025, Pietron was sentenced to 18 months in federal prison for his fraudulent activities. His sentence also includes payment of over $1.35 million in restitution to resolve outstanding tax obligations.
Key Lessons for Business Owners
This case serves as a reminder of the severe consequences of engaging in tax and workers’ compensation fraud. Misclassifying employees, using shell companies, and falsifying payroll information may result in criminal charges, hefty fines, and prison time.
Transparent reporting practices and compliance with tax laws and workers’ compensation requirements are essential for all businesses, regardless of size or industry. Employers should prioritize proper payroll management and seek expert guidance to avoid similar legal repercussions.
Conclusion
The sentencing of Dariusz Pietron highlights the government's commitment to combating workers’ compensation premium evasion and payroll tax fraud. It also underscores the importance of ethical and transparent business practices to protect employees, insurers, and government resources.
