December 21, 2011 | last updated December 21, 2011 10:54 am

Jail ordered for Bangor oil co. owner

Andrew Murphy Sr. of Bangor was sentenced to serve five months in jail for 14 counts of tax fraud in connection with his operation of his oil and trucking businesses, A.J. Murphy Inc., Hudson Road Holding Co. and Heaten Oil Co.

Murphy in August pleaded guilty to theft of withholding tax, intentional tax evasion, failure to pay withholding tax and making false statements in tax returns in relation to his businesses, according to a press release from the Maine Attorney General's Office. From 2005 to 2010, Murphy allegedly repeatedly reported to Maine Revenue Services that he had no employees, when in fact he had several, and he stole taxes that he withheld from his employees' wages rather than pay them to the state.

Penobscot County District Court Judge Bruce Jordan sentenced Murphy to three years in jail with all but five months suspended and three years of probation. He was ordered to pay back $65,713 in restitution, which represents the withholding taxes and unpaid corporate, sales and personal income tax.


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