The former president and chief operating officer of a Massachusetts consulting company has pleaded guilty to tax evasion using a ?sham? Bermuda company.

A Press statement from Massachusetts US Attorney Michael J. Sullivan said that Ronald Gomes, the former President and partial owner of Digital Consulting Inc. pleaded guilty to charges of tax evasion for failing to report to the IRS income that he received from revenue that was generated by DCI and which he diverted to the Bank of Bermuda in order to evade the payment of federal income taxes.

DCI, located in Andover, Massachusetts, organised and conducted computer-based training seminars, trade shows, and conferences for businesses in the computer industry.

The US Attorney?s office alleged that from 1992 through 1996, DCI diverted over $8 million of its gross receipts to Digital Consulting International, Ltd., ?a sham corporation set up in Bermuda?, to evaded paying taxes on that income.

?Gomes, who was also DCI?s chief operating officer, was aware of DCI?s scheme to evade taxes and received approximately $913,177 from 1993 through 1995, that he failed to report on his income tax returns to the Internal Revenue Service,? the statement said.

Mr. Gomes, 61, pleaded guilty to the charges on November 3, and will be sentenced on January 24.

A second DCI employee, controller Diane Reed, was charged on Tuesday with tax evasion charges related to the Gomes case.

Both Mrs. Gomes and Ms Reed face up to five years? imprisonment, to be followed by three years of supervised release, and a $100,000 fine on each count charged.

The investigation is continuing.