Source: United States Department of Justice Criminal Division
An indictment was unsealed today charging Arthur Nelson, of Staten Island, New York, and Sunny Isles Beach, Florida; Joseph Free, of Staten Island; Paul Vasquez, of Englishtown, New Jersey; and Ulysses Jude Devocion, of Queens County, New York, with various crimes including conspiring to defraud the IRS, tax evasion, willfully failing to withhold and pay over employment taxes, failing to file income tax returns, helping to file false corporate tax returns, interfering with the administration of the internal revenue laws, conspiracy to commit wire fraud, failure to file reports of foreign bank accounts, and obstruction of justice.
According to the indictment, Nelson allegedly owned and operated various construction subcontracting companies, including MTB AMG Inc. and PAL AMG Inc., which installed glass on commercial businesses; MTB Metal Fabricators Inc., which provided manufacturing services; and Wired NYC LLC, which provided electric installation services. Nelson’s companies were based in Brooklyn, New York, until March 2022 when they relocated to New Jersey.
Also according to the indictment, Free allegedly worked as a construction foreman for the Nelson Companies from March 2017 to approximately 2022. Vasquez allegedly was the senior director of operations until approximately 2025. Devocion was allegedly an accountant and office manager, from approximately 2021 and 2023.
From April 2017 through May 2024, the four defendants allegedly caused Nelson’s employees to be paid weekly wages with no amounts withheld for federal employment taxes. These unreported wages totaled at least approximately $5 million. Further, they allegedly falsely classified and caused the false classification of personal expenses as business expenses and filed or caused the filing of false federal tax returns, including quarterly employment tax returns, corporate tax returns, and individual income tax returns. They also allegedly caused the Nelson Companies to issue false wage and tax statements, commonly known as W-2s, to its employees. Nelson also underreported his business gross receipts by approximately $13 million.
From July 2019 through March 2025, Nelson, Devocion, and Vasquez allegedly engaged in a scheme to submit false financial documents relating to Nelson and the Nelson Companies to other companies to obtain money or property in amounts to which they were not entitled, including, for example, loans, mortgages, lines of credit, credit cards, and surety bonding contracts.
Nelson is charged with one count of conspiracy to defraud the United States, six counts of willful failure to withhold and pay over employment taxes, one count of attempting to interfere with the due administration of the internal revenue laws, two counts of tax evasion, one count of conspiracy to commit wire fraud, and two counts of willful failure to file reports of foreign bank and financial accounts (FBAR).
Free is charged with one count of conspiracy to defraud the United States, one count of attempting to interfere with the due administration of the internal revenue laws, one count of willfully aiding and assisting in the presentation of a false and fraudulent tax return, and one count of willfully failing to file an individual income tax return.
Vasquez is charged with one count of conspiracy to defraud the United States, one count of attempting to interfere with the due administration of the internal revenue laws, and one count of conspiracy to commit wire fraud.
Devocion is charged with one count of conspiracy to defraud the United States, one count of willfully failing to file an individual income tax return, one count of conspiracy to commit wire fraud, and obstruction of justice in connection with his testimony before the grand jury.
If convicted, the defendants face a maximum penalty of 20 in prison for conspiracy to commit wire fraud and for obstruction of justice; a maximum penalty of five years in prison for the counts of conspiracy to defraud the United States, willful failure to withhold and pay over employment taxes, tax evasion, and failing to file an FBAR; a maximum penalty of three years in prison for each count of aiding and assisting the filing of false tax returns and for interfering with the due administration of the revenue laws; and a maximum penalty of one year in prison for each count of willful failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Richard Kelley and Michael C. Vasiliadis of the National Fraud Enforcement Division’s Tax Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.