Charlestown Man Charged With Tax Evasion, Helping Suffolk Downs Bettors

The following is a press release from the office of United States Attorney Carmen Ortiz. It has been edited only for format.

A Charlestown man was arrested and charged for allegedly helping gamblers at Suffolk Downs in East Boston avoid paying taxes on over $2 million in winnings.

Gary Boyar, 53, was charged with corruptly endeavoring to impede the Internal RevenueService (IRS), filing a false income tax return, and two counts of tax evasion in an indictmentreturned on Sept. 13, 2012.

According to the indictment, Boyar was a “ten-percenter,” a phrase referring to the 10% fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS. The indictment alleges that, when Boyar cashed tickets and submitted forms to the IRS associated with those tickets, he used his deceased father’s social security number to obstruct the IRS.  

The indictment alleges that, during the tax years 2004 through 2006, Boyar cashed more than $2 million worth of winning tickets at Suffolk Downs, and submitted approximately 1,713 false IRS forms using his deceased father’s social security number.

The indictment further alleges that, in 2008, Boyar filed a false 2004 income tax returnclaiming a $591.74 refund from the IRS. Boyar did not file any income tax return for the years 2005 and 2006.

If convicted on these charges, Boyar faces up to five years in prison for each count of tax evasion to be followed by three years of supervised release; up to three years in prison to befollowed by one year of supervised release for corruptly endeavoring to obstruct the IRS; and three years in prison to be followed by one year of supervised release for filing a false 2004 income tax return. Each count also comes with a fine of up to $250,000 per count.

U.S. Attorney Carmen M. Ortiz, Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division and Special Agent in Charge William P. Offord of theInternal Revenue Service’s Criminal Investigation in Boston made the announcement Thursday. The case is being prosecuted by Trial Attorney Sean R. Delaney of the Tax Division.

The details of the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.