Crime & Safety

Shrewsbury Man Pleads Guilty To Tax Fraud

The man was the owner of auto body shops in Everett and Worcester and is accused of being part of a payroll tax scheme that stole $290K.

SHREWSBURY, MA — A Shrewsbury man who owned auto body shops in Worcester and Everett pleaded guilty to a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.

Adam Haddad, 43, of Shrewsbury, pleaded guilty on Monday to three counts of aiding the preparation of false tax returns. He will be sentenced on Jan. 13, 2021. Haddad was charged in August 2020.

According to the Department of Justice, for tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” The payments caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages Haddad had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.

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The maximum sentence is three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.

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