Roger A. Armstrong, 61, of Vineyard Haven pleaded guilty to tax fraud in U.S. District Court in Boston January 21. Mr. Armstrong was accused of underreporting more than $800,000 in income on his personal tax returns, over a three-year period, according to a press release from the office of United States Attorney Carmen M. Ortiz.
Mr. Armstrong, a certified public accountant, has an office at 31 Beach Road. He has handled tax preparation and accounting for clients on Martha’s Vineyard for more than 20 years, according to his business profile on the social media business site LinkedIn.
The U.S. attorney’s office said Mr. Armstrong failed to report income from his accounting business, and from rental property in Massachusetts and Florida.
“As a sole proprietor, Mr. Armstrong was required to accurately report his gross receipts and his business profit or loss on his individual income tax returns and also was to report any rental income he received,” the U.S. Attorney’s office said in a press release. “For tax years 2009 through 2011, Mr. Armstrong filed tax returns in which he significantly underreported both his business gross receipts and his rental income. For these three tax years, Mr. Armstrong did not report a total of approximately $790,000 in gross receipts and approximately $47,000 in rental income. As a result of the underreporting, Mr. Armstrong did not pay $200,000 in taxes.”
Mr. Armstrong was released on personal recognizance, after posting an unsecured $10,000 bond. He was ordered to surrender his passport, to refrain from possessing firearms, and to refrain from any use of alcohol.
The maximum sentence is three years in prison, and a $250,000 fine for each offense, though actual sentences are based on federal sentencing guidelines, and are typically less than the maximum penalty.
Sentencing is scheduled for April 28, before U.S. District Court Judge Indira Talwani.
“There’s a process where there’s a presentence investigation,” Amy Hosner, public information officer for the U.S. Attorney, said. “Each side will prepare a sentencing memorandum to present to the court.”
According to the plea agreement, the U.S. attorney will recommend to the judge that Mr. Armstrong make restitution to the IRS in the amount of $389,365, which includes interest and penalties. They will also recommend a jail sentence on the low end of the federal sentencing guidelines. As part of the plea agreement, the U.S. attorney will not seek additional criminal charges for crimes underlying the tax fraud charges.
According to the Massachusetts Division of Public Licensure, Mr. Armstrong still holds a valid license and certification as a CPA, and has not faced any previous disciplinary action.
On the day after changing his plea to guilty in federal court, Mr. Armstrong was in his Beach Road office. Mr. Armstrong, through an assistant, told The Times he had nothing to say at this time.
