Medford Contractor Charged With Tax Evasion, Loan Application Fraud

MEDFORD, MA — A Medford contractor has been charged in connection with a multi-year scheme to underreport income on his tax returns and obtain loans based on false applications, according to Acting U.S. Attorney Joshua Levy.

According to the U.S. Attorney's Office, Peter Tufts, 55, has agreed to plead guilty to one count of tax evasion and two counts of submitting false loan applications.

The charging document states that Tufts, the owner of Tufts Construction, Inc. underreported income on his corporate and personal tax returns for tax years 2015 through 2021, resulting in an income tax loss of more than $465,000.

In addition, Tufts allegedly used the proceeds of his income tax evasion scheme to fund an off-the-books cash payroll that Tufts used to avoid employment taxes, causing a payroll tax loss of more than $539,000.

Prosecutors say that, while perpetrating his tax evasion scheme, Tufts obtained loans from a local community bank and from the Small Business Administration based on false loan applications.

In his loan applications and documents, Tufts falsely told the bank and the SBA that he had never declared bankruptcy, owed no back taxes, and was not involved in litigation, prosecutors say. However, court documents state that Tufts was involved in ongoing bankruptcy proceedings and was engaging in an income and employment tax evasion scheme.

Tufts could face up to five years in prison, three years of supervised release, and a $250,000 fine, or twice the gross gain or loss, for tax evasion. He could also face up to 30 years in prison, five years of supervised release, and a 1 million fine, or twice the gross gain or loss, for submitting false loan applications.

A plea hearing has not yet been scheduled by the court.