Scituate man pleads guilty to tax charges

PROVIDENCE — A Scituate man pleaded guilty Wednesday to federal charges of bankruptcy fraud and tax evasion in connection with his failure to pay $2.1 million in employment taxes for two of his companies.

Appearing before Chief U.S. District Judge Mary M. Lisi, Steven Allard, 47, also admitted that he made false statements in a personal bankruptcy petition and creditors’ hearing by failing to disclose his ownership of property at 91 Haven St. in Warwick.

Assistant U.S. Attorney Andrew J. Reich said that if the case had gone to trial the government would have proven that Allard directed that income generated from one of his businesses, Builders Resources Inc.-Massachusetts, which makes steel commercial buildings, be transferred to three of his other businesses, Builders Resources Inc.-Delaware, Quad and Edgewood.

He said Allard failed to pay the IRS the employment taxes due from his companies and instead diverted the funds to benefit himself and his wife, including the purchase of luxury automobiles.

Released on $50,000 unsecured bond, Allard is scheduled to be sentenced on Oct. 22. He faces maximum penalties of five years in prison on both the bankruptcy and tax-evasion counts and $350,000 in fines.

–– Richard C. Dujardin

Guilty verdict in federal drug-dealing trial

PROVIDENCE — A U.S. District Court jury has convicted Stiven F. Polanco of drug trafficking for his attempted sale, in early December, of 100 grams of heroin to an undercover law enforcement officer. The sting involved the Newport police and federal drug agents.

Acting U.S. Attorney Luis M. Matos said it took jurors only two hours Tuesday to reach a verdict after hearing two days’ testimony before Judge William E. Smith. A codefendant, David Contreras, pleaded guilty in February to conspiracy to distribute more than 100 grams of heroin.

At Polanco’s trial, prosecutors presented evidence that on Dec. 3 he assisted Contreras in providing 19 grams of heroin to an undercover agent and that on Dec. 10, after Contreras had arranged to sell 100 grams to the same officer, drug agents found the pair at the designated location waiting in Polanco’s car.

A search of the car led to the seizure of 94 grams of heroin and a loaded .45-caliber handgun from a hidden compartment, and a search of Polanco’s apartment yielded 12 more grams of heroin and .38-caliber ammunition.

The jury found Polanco guilty of conspiracy to distribute and possess with the intent to distribute 100 grams of heroin, aiding and abetting the distribution of heroin, possessing 100 grams of heroin with the intent to distribute and possession of a firearm in furtherance of drug trafficking.

Polanco and Contreras face maximum sentences of 40 years in prison and $2 million in fines. Polanco also could be given up to five years, to be served consecutively, on the firearms charge.

–– Richard C. Dujardin