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Former Official of Woburn Company Sentenced

Patrick Cavanaugh, 50, of Gloucester, was sentenced to 18 months in prison and one year of supervised release.

Photo credit: Patch file photo.
Photo credit: Patch file photo.

A former chief operating officer of Calloway Laboratories, Inc., a drug testing company in Woburn, was sentenced to prison for federal tax-related crimes.  

U.S. District Court Judge George A. O’Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. Cavanaugh pleaded guilty to four counts of subscribing to false tax returns from 2005 to 2008.

Cavanaugh, the former chief operating officer of the urine drug testing company in Woburn, filed false federal income tax returns for tax years 2005 through 2008, by “substantially underreporting his income during those tax years,” the office of Carmen Ortiz, United States Attorney for the District of Massachusetts.

“During that period, while employed at Calloway, Cavanaugh received payments, in the form of checks and cash, from JAC Resources, Inc., a straw company that Cavanaugh owned and controlled, but failed to report the income on his federal income tax returns."

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