March 4, 2008
Skimming Scheme Lands Groton Man In Jail
By Matthew L. Brown
A Groton man convicted of wire fraud and preparing false tax returns will spend 46 months in federal prison and must repay the $1.7 million he skimmed from clients.
According to U.S. Attorney Michael J. Sullivan , Michael R. Thorpe, 61, of Groton ran Chelmsford-based Payroll Express and a second company, GFA Inc. According to Sullivan's office, between 1999 and 2003, Thorpe diverted more than $1.7 million of his Payroll Express clients' IRS tax payments to accounts held by GFA. Thorpe provided the IRS and clients with falsified payroll tax forms, and was caught when the IRS alerted the clients about the unpaid taxes. The clients were forced to pay the unpaid taxes as well as penalties and interest.
After his prison term, Thorpe will be under supervised release for three years.
According to U.S. Attorney Michael J. Sullivan , Michael R. Thorpe, 61, of Groton ran Chelmsford-based Payroll Express and a second company, GFA Inc. According to Sullivan's office, between 1999 and 2003, Thorpe diverted more than $1.7 million of his Payroll Express clients' IRS tax payments to accounts held by GFA. Thorpe provided the IRS and clients with falsified payroll tax forms, and was caught when the IRS alerted the clients about the unpaid taxes. The clients were forced to pay the unpaid taxes as well as penalties and interest.
After his prison term, Thorpe will be under supervised release for three years.
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