Charlestown Man Pleads Guilty to Suffolk Downs Tax Scheme

A Charlestown man accused of helping gamblers at Suffolk Downs get out of paying taxes on their winnings pleaded guilty to the charges on Wednesday.

Gary Boyar, 53, of Charlestown pleaded guilty in U.S. District Court to charges of corruptly endeavoring to impede the Internal Revenue Service and tax evasion, according to a press release from the office of U.S. Attorney Carmen M. Ortiz.

“Boyar was a ‘10-percenter,’ a phrase referring to the 10 percent fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS,” according to the U.S. attorney’s office. “This scheme allowed gamblers to avoid paying taxes on their winnings, which were taxable income. Boyar cashed tickets and submitted forms to the IRS associated with those tickets using his deceased father’s Social Security number to obstruct the IRS.”

From 2004 through 2006, Boyar reportedly cashed more than $2 million worth of winning tickets at Suffolk Downs and submitted more than 1,700 fake IRS forms—preventing the IRS from identifying the actual winners, the press release stated.

“In 2008, Boyar filed a false 2004 income tax return claiming a $591.74 refund from the IRS. The return omitted the income earned through his 10 percent fee scheme,” according to Ortiz’s office. “Boyar did not file any income tax return for the years 2005 and 2006.”

Boyar faces up to five years in prison for tax evasion and three years for corruptly endeavoring to obstruct the IRS.