Oil Company Owner Guilty in Tax Case
A federal jury in Boston has found Covenant Oil Co. Inc. owner Augstine Pesaturo Jr. of Wakefield, Mass., guilty of evading the assessment and payment of motor vehicle fuel excise taxes owed by his business
A federal jury in Boston has found Covenant Oil Co. Inc. owner Augstine Pesaturo Jr. of Wakefield, Mass., guilty of evading the assessment and payment of motor vehicle fuel excise taxes owed by his business.
Pesaturo was convicted of one count of conspiracy to defraud the United States, three counts of tax evasion, and one count of filing a false U.S. Corporate Income Tax Return.
Evidence presented during the trial proved that PESATURO directed his drivers to blend untaxed kerosene and home heating oil with diesel fuel prior to selling the fuel to various trucking companies. There is a 24.4 cent per gallon federal excise tax on diesel fuel sold for use in vehicles that travel on the road. Normally, kerosene and heating oil are not similarly taxed. If, however, kerosene and heating oil are used in on-road trucks, they are subject to the same tax as diesel fuel. Pesaturo was able to purchase kerosene and home heating oil from fuel suppliers without paying the excise tax only by falsely certifying that the kerosene and home heating oil would not be sold for use in on-road vehicles unless Pesaturo paid the excise tax.
Pesaturo was also convicted of filing a false 1995 Corporate Income Tax Return for Covenant Oil that overstated the cost of the fuel that Covenant Oil sold.
Sentencing has been scheduled for Sept. 18.
Pesaturo faces a maximum sentence of five years in prison, to be followed by up to three years of supervised release, and a $250,000 fine on each of the conspiracy and tax evasion counts. Additionally, he faces a maximum sentence of three years in prison, to be followed by up to one year of supervised release, and a $250,000 fine for the false tax return count.
Special Agents of the U.S. Internal Revenue Service, Criminal Investigation, assisted by the Environmental Protection Agency’s Criminal Investigation Division investigated the case. William J. Lovett and David J. Ignall, Trial Attorneys with the U.S. Department of Justice’s Tax Division prosecuted the case.
More Drivers

Why Hiring Truck Drivers Is Getting Harder
Higher recruiting costs, a shrinking driver pool, and renewed pay competition are raising the stakes for fleets heading into 2027.
Read More →
Roehl Offers Truck Drivers $10,000 Retention Incentive
Payments begin after the first load and continue in mileage-based installments for eligible experienced drivers joining the fleet.
Read More →
Platform Science Adds Dispatch and Safety Tools
Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.
Read More →
When Language Stops the Truck: The Return of ELP Out-of-Service Orders
English language proficiency rules for commercial drivers aren’t new, but renewed out-of-service enforcement has raised the stakes. Here’s what carriers need to know before a driver reaches a roadside inspection.
Read More →
Samsara Launches Custom AI Agent Builder
Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.
Read More →
Trucker Path Expands Reserved Parking Network
Trucker Path has added close to 6,000 more truck parking spaces to its Trucker Path Reserved Parking Network with the addition of Safe Truck Parking.
Read More →
EEOC Sues Texas Trucking Company Over Driver Age Limits
The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.
Read More →
Nussbaum, Roehl Announce Second Driver Pay Increase This Year
This year has seen a swath of major truck driver pay increases as freight capacity has tightened.
Read More →
From One Generation to the Next: How Mentorship Builds Safer Truck Drivers
After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.
Read More →
Truck Drivers Need More Than Another Alert
Fleets have more visibility into truck health, safety events, and driver activity than ever. The next challenge is turning all that information into useful guidance for the person who has to decide what to do next.
Read More →
