PROVIDENCE – A local business owner has admitted to failing to turn over $570,000 in federal employment taxes and FICA payments to the IRS, the state’s U.S. attorney’s office announced on Thursday.
Steven M. Allard, owner and operator of BR Steel Corp. in Burrillville and Greystone Iron Corp. in Smithfield, pleaded guilty in U.S. District Court to willful failure to collect or pay over taxes. The companies specialize in major construction projects, such as shopping malls and school buildings. BR Steel employs between 45 and 55, while Greystone Iron employs between 75 and 85.
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Allard admitted to intentionally failing to turn over the employment taxes and FICA payments from his companies both in 2017 and 2018.
The USAO said that Allard used some of the funds withheld from employees to purchase over $216,000 in credits to an online dating site, and used $93,000 for rent payments. This is the third time Allard has been convicted in federal court in Providence. He is scheduled to be sentenced on Nov. 20. The USAO noted that willful failure to collect or pay taxes is punishable by statutory penalties of up to five years in federal prison, three years of supervised release, and a fine of up to $250,000.
