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Fri September 14, 2012
McCauley and business partner to plead guilty to fraud, filing false tax returns
Longtime state Representative John McCauley, who is not seeking re-election, and his business partner have agreed to plead guilty to charges, according to the US Attorney’s office:
John J. McCauley, Jr. 54, of Cranston, and William L’Europa, 47, of Cranston, owners and operators of McCauley and L’Europa Public Adjusters, LLC and PIA Restoration, LLC, were charged in documents filed in federal court today with conspiracy to defraud the United States and filing false tax returns. According to plea agreements filed with the court, McCauley and L’Europa will plead guilty to one count of conspiracy to defraud the United States and one count of filing false tax returns.
According to the documents filed with the court, McCauley and L’Europa allegedly underreported business receipts for tax years 2007 – 2010 by nearly $1.8 million dollars, resulting in the underpayment of federal taxes to the Internal Revenue Service of more than $500,000.
The charges and plea agreements were announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the signed plea agreements, McCauley and L’Europa must file accurate, amended federal tax returns for tax years 2007 – 2011.
If imposed consecutively, the maximum penalties for all offenses to which McCauley and L’Europa have agreed to plead guilty are eight years imprisonment; a fine of $500,000 or the greater of twice the gross gain or twice the gross loss; and a term of supervised release of four years.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Sandra R. Hebert.
The matter was investigated by IRS-Criminal Investigation, FBI, ATF, Rhode Island State Police, and Providence Fire Department Fire Prevention Division.