Massachusetts Scrap Dealer Sentenced to Six Months for Perjury

Yale Strogoff, a scrap metal recycler who operated in Massachusetts, has been sentenced by U.S. District Judge Nathaniel Gorton to six months imprisonment, to be followed by two years of supervised release and a $20,000 fine, for perjury. Strogoff pled guilty of the one count on Oct. 2, 2009.

In early 2007, Strogoff testified in a pre-trial evidentiary hearing before a district judge concerning a criminal tax case. During that hearing, the issue of his use of cash for illicit business purposes was raised. Despite Strogoff claiming he did not recall paying employees a portion of their salary in cash, the prosecution determined that for a period of at least 20 years, beginning in about 1980, and continuing until at least the early 2000s, Strogoff’s employees were given weekly pay envelopes which contained both a check and cash.

The practice continued until the early 2000s when Strogoff was first approached by the Internal Revenue Service in connection with its criminal investigation. As a result of Strogoff’s perjury at the hearing, the federal government dismissed all charges in the criminal tax case.

The case was investigated by the Internal Revenue Service - Criminal Investigation.