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Maine business owner sentenced for tax fraud

December 21, 2011
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AUGUSTA, Maine—The owner of a Maine heating oil business is being sentenced to five months in jail for tax fraud.

Attorney General William Schneider says 49-year-old Andrew Murphy Sr. of Bangor was sentenced Tuesday after being convicted of 14 counts of state tax fraud, including theft of withholding tax, intentional tax evasion, failure to pay over withholding tax and making false statements in tax returns. He must also pay $65,713 in restitution.

Murphy operates a fuel oil and trucking delivery business. He pleaded guilty in August following an investigation covering 2005 through 2010.

During this time period Murphy repeatedly reported to Maine Revenue Services that he had no employees, when in fact he had several. Instead of handing over the withholding taxes he kept the money.

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