BOSTON (WHDH) - A Westfield business owner faced a judge Friday after authorities say he defrauded the state by selling suppression software to restaurants that enabled them to delete cash sales and keep meals taxes paid by customers.
Paul K. Backholm, 53, was arraigned in Suffolk Superior Court and pleaded not guilty to five counts of conspiracy, five counts of aiding false meals tax returns, and five counts of aiding failure to account for and pay over meals taxes, Attorney General Maura Healey announced Wednesday.
He was released on personal recognizance and is due back in court on May 17 for a pretrial conference.
Backhom is the resident, treasurer, and sole shareholder of Forbes Snyder Tri-State Cash Register Company, Inc., an Easthampton-based firm that sells software and technical support for Point-of-Sale cash register systems, the AG’s office said.
From 2010 to 2015, Backholm allegedly sold sales suppression software to restaurants for cash that enabled the restaurants to delete cash sales, keep the meals tax that had been paid by the customer, and renumber the remaining transactions to cover up the deletions.
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