PROVIDENCE – Dr. Lawrence P. Stephenson of Lincoln was sentenced in U.S. District Court to three years probation and 280 hours per year of community service for diverting and failing to report as much as $1.2 million in payments made to his dentistry practice in North Providence, the U.S. Attorney for the District of Rhode Island Stephen G. Dambruch announced Wednesday.
Stephenson’s community service includes the provision of free dental care. He was also ordered to pay a fine of $75,000 by U.S. District Court Chief Judge William E. Smith.
Stephenson admitted, at the time of his guilty plea, that he diverted portions of his practice’s business receipts by depositing checks from insurance carriers and patients into a personal bank account. An investigation by the Internal Revenue Service showed that he failed to report about $1.2 million – and therefore did not pay taxes on that money.
Stephenson has since paid $906,557.78 in back taxes and penalties for the tax years 2011 to 2014.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com