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Donald Dougherty, 54, who owns Dougherty Electric, Inc. as part of a plea deal agreed to pay $92,913 in taxes due to the Internal Revenue Service, arising from false business deductions for what were actually personal expenditures, First Assistant United States Attorney Jennifer Arbittier Williams said.
Dougherty also agreed to pay $266,000 in restitution to the International Brotherhood of Electrical Workers Local Union 5 in Pittsburgh, after he failed to make $266,000 in contributions to Local 5’s employee benefit funds, Williams said.
Dougherty's actions were in violation of the collective bargaining agreement between DEI and Local 5, Williams said.
Dougherty also agreed to pay all restitution still owed for similar charges in a 2007 incident, in which he plead guilty and was imprisoned for filing false income tax returns, tax evasion, making an unlawful payment to a union official, theft of employee benefit funds, and related offenses, Williams said.
Michael McKale, an accountant who worked for Dougherty was also charged with tax fraud on Nov. 25, Williams said.
“Donald Dougherty has a track record of trying to skirt the law and defraud hard-working individuals,” said Williams.
“But the government also has a track record of convicting Dougherty for his crimes. And we will continue to do just that with every criminal who attempts this kind of scheme.”
“Today, Donald Dougherty admitted he broke the law by cheating on his taxes," IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso added.
"As we approach tax filing season, those who might consider filing false tax returns should be aware of the negative consequences; which could include being branded a felon for life and a lengthy prison sentence.”
Dougherty entered his guilty plea before United States District Court Judge Michael M. Baylson.
The case was investigated by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Employee Benefits Security Administration branch of the Department of Labor, and is being prosecuted by Assistant U.S. Attorneys Paul L. Gray and Frank R. Costello, Jr.
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