Rhode Island representative pleads guilty to tax fraud

September 28, 2012

Providence, Rhode Island: Rhode Island Representative John McCauley pleaded guilty to conspiracy and tax fraud in the U.S. District Court for the District of Rhode Island on September 28. He appeared before Chief Judge Mary Lisi. McCauley and his business partner, William L'Europa, both admitted to filing false tax returns for their insurance adjusting business. Through various methods, they underreported $1.8 million in income and kept over $500,000 that they owed to the federal government.

McCauley, who has served on the House of Representatives since 1990, stated, "I made a mistake. I am remorseful." He and L'Europa could face up to eight years in prison, as well as fines and back taxes. They will be sentenced in December.