PROVIDENCE — A North Providence dentist pleaded guilty in U.S. District Court in Providence Wednesday to tax evasion, admitting that he diverted and failed to report as much as $1.2 million dollars in payments made to his business.
Lawrence P. Stephenson, 72, of Lincoln, whose dental practice is located in North Providence, admitted to the Court that in 2011, he started diverting a portion of his practice’s business receipts by depositing numerous checks from insurance carriers and patients into a personal bank account, according to United States Attorney Stephen G. Dambruch’s office.
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Stephenson appeared before U.S. District Court Chief Judge William E. Smith.
An investigation by Internal Revenue Service Criminal Investigation revealed that Stephenson failed to report approximately $1.2 million dollars paid to his dental practice and deposited it elsewhere, in the process failing to pay taxes due the IRS, according to Kristina O’Connell, Special Agent in charge of IRS-CI.
Over the years Stephenson made significant withdrawals from the personal account, including approximately $530,000 in 2013 and 2014. The funds were transferred to other banks and investment accounts he owned. Some of the funds he withdrew were used to pay personal expenses. In 2013 alone, Stephenson admitted to underreporting his income to the IRS by more than $320,000.
Stephenson is scheduled to be sentenced on October 12, 2018. The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
Rob Borkowski is a PBN staff writer. Email him at Borkwoski@PBN.com.
