Barrington Resident Admits to Defrauding $1.2 Million from Businesses

A Barrington resident pleaded guilty to failing to pay the Internal Revenue Service $1.2 million in employment taxes.

Checkmaster Payroll Services owner Warren Hebert, 67, was charged with eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code.

Herbert admitted to defrauding several businesses in Rhode Island and Massachusetts of more than $1.2 million in federal payroll taxes from April 2009 to October 2011.

Herbert said he withdrew funds from client accounts to pay the clients’ federal employment taxes and failed to pay the IRS approximately $1,266,680.

According to the indictment, he would divert the funds for his own use and to pay the additional tax liabilities, interest and penalties of other clients.

Herbert diverted funds from the Seekonk Water District, a moving and storage company, a nursery school, a jewelry packaging company and a marketing and communications company.

He will be sentenced in U.S. District Court on Friday, Jan. 9, 2015.

Herbert faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud. He also faces up to three years in prison and a $250,000 fine for impeding the administration of the Internal Revenue Code.

The case was investigated by IRS Criminal Investigation, the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.

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