A Watertown business owner pleaded guilty yesterday in connection with a scheme to evade taxes and workers’ compensation insurance premiums by paying employees under the table for their work.

Richard Moxley pleaded guilty one count of tax evasion and one count of mail fraud. Moxley owned and operated Sparkling Windows, a window and gutter cleaning company based in Watertown. From 2008 to 2012, Moxley devised and executed a scheme to defraud the Internal Revenue Service and the insurance company providing workers’ compensation insurance for Sparkling’s employees, by filing false tax returns and paying workers in cash. By doing so, he concealed a substantial portion of the company’s business revenues and payroll, and filed false tax returns, evading a significant portion of federal taxes and fraudulently reducing the premiums for workers’ compensation insurance owed in connection with the business.

He faces up to five years in prison for tax evasion, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Moxley faces up to 20 years for mail fraud, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.

He is scheduled for sentencing on Aug. 17, 2016.