Friday, March 28, 2008

A Suffolk County Grand Jury has indicted a Falmouth couple for allegedly failing to report over $300,000 worth of income on tax returns they filed. Custodio Dematos, age 64, and his wife Fernanda, age 59, are each charged with Willfully Making and Subscribing a False Income Tax Return (3 counts), Willful Aiding or Assisting in the Preparation or Presentation of a Return, which is Fraudulent or is False, and Knowingly Filing a False Tax Return.

A joint-investigation by the Attorney General's Office and the Massachusetts Department of Revenue (DOR) began in July 2005 after the matter had been referred to DOR. Investigators discovered that in tax returns filed for the years 2001-2004, the Dematoses failed to report approximately $300,000 in income. Authorities allege that during Mrs. Dematos' work as an elder care provider, she and her husband never reported any of this income on their joint income tax returns. Based on the amount of unreported gross income, the Dematoses allegedly avoided paying approximately $16,000 in state income taxes.

A Suffolk County Grand Jury returned indictments against the Dematoses yesterday. They are scheduled for arraignment on April 14, 2008, in Suffolk Superior Court.

The case is being prosecuted Assistant Attorney General David Waterfall, of Attorney General Martha Coakley's Corruption and Fraud Division, and was investigated by DOR Chief investigator Thomas Nowicki.

Media contact:
Harry Pierre (AGO)
617-727-2543

Bob Bliss (DOR)
blissr@dor.state.ma.us
617-626-2369