BOSTON, March 27 -- The speaker of the Massachusetts House has agreed to plead guilty to federal felony tax fraud and state ethics charges, federal prosecutors announced Wednesday. Under the agreement, rumored for weeks, U.S. Attorney Donald Stearn said veteran Democratic Rep. Charles Flaherty will be liable for more than $50,000 in federal and state fines but will not have to go to jail.
Stearn said Flaherty, 57, signed an agreement to plead guilty to one count of tax fraud by lying in a sworn affidavit on his 1983 income tax return, which was later audited by the Internal Revenue Service. The government said Flaherty filed a false affidavit and made-up diary to make it appear as if the thousands of dollars in false deductions he had sought were justified. He 'lied under oath and submitted bogus diaries and meal receipts,' Stearn said. Flaherty agreed to pay $25,000 on the tax charge, and will also be placed on two-years probation, if the agreement is approved by the courts, Stearn said. Flaherty also agreed to comply with state Ethics Commission charges that impose about $25,000 in fines, Stearn said. Stearn, justifying the lack of jail time for Flaherty, said the speaker was being treated the same as any other taxpayer convicted for a similar offense, 'no more, no less,' and said the punishment was 'consistent' with that provided under law. The message, Stearn said, was that 'If you cheat on your taxes, and lie to the Internal Revenue Service, at some point it's going to catch up with you.'
