A Bedford man has been sentenced in federal court for failing to pay over $14 million in payroll taxes owed to the IRS and neglecting his personal tax obligations. Acting U.S. Attorney Jay McCormack and Acting Deputy Assistant Attorney General Karen E. Kelly announced the sentencing.
Andrew Park, 49, received a 30-month prison sentence from U.S. District Court Judge Landya McCafferty, along with three years of supervised release. He was also ordered to pay $639,821.78 in restitution and a $15,000 fine. In July 2024, Park pleaded guilty to willful failure to pay payroll taxes and file a tax return.
Park co-founded a startup technology company where he managed financial matters, including filing quarterly payroll tax returns and handling Social Security, Medicare, and income taxes withheld from employees' wages. Despite being notified by a payroll service company about due taxes hundreds of times and receiving complaints from employees about unpaid withholdings reported by the Social Security Administration, Park did not remit these taxes.
From 2013 through 2020, Park also failed to file individual tax returns despite earning an annual salary of approximately $250,000. His actions resulted in a tax loss exceeding $14.7 million to the IRS.
Acting United States Attorney Jay McCormack stated: "For many years, the defendant took elaborate steps to defraud the IRS by not filing or paying his personal income taxes and by using his employees’ payroll taxes as free capital to grow his business." He emphasized that the sentence reflects the seriousness of Park's conduct.
Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Boston, remarked: "Yesterday’s sentencing of Andrew Park is a strong reminder that payment of individual and business taxes is an obligation, not a choice."
The investigation was led by IRS-Criminal Investigation with prosecution handled by Assistant U.S. Attorney Matthew T. Hunter and Assistant Chief Eric Powers of the Tax Division.