Investment adviser gets prison for failing to pay tax on $1.5M

A Connecticut investment adviser was sentenced last week to six months in prison and a $50,000 fine for a federal tax offense involving a $286,328 tax loss to the IRS, according to federal authorities.

Thomas Pacilio, 64, of Westport, also was sentenced by U.S. District Judge Sarala V. Nagala in Hartford to one year of supervised release, according to federal authorities.

Authorities, citing both court documents and statements made in court, said that Pacilio and his partner started Clapboard Hill Advisors LLC, a financial services business headquartered in Westport in 2011. Then, Pacilio created Alcamo Holding Corp. Inc. in 2013 and transferred his Clapboard Hill Advisors partnership interest to Alcamo, federal authorities said in a statement.

Pacilio, through Alcamo, and his partner, and using "a separate 1120S corporation, then sold Clapboard Hill Advisors to McGladrey Wealth Management LLC," the statement said.

"McGladrey agreed to make a lump sum payment at closing," and thereafter, "Pacilio was to become an employee of McGladrey for three years subject to a non-competition provision," federal authorities said. "In addition to being paid a salary by McGladrey, if Pacilio remained an employee, Pacilio would receive a $350,000 payment on each anniversary of the sale for three years. He would also receive a portion of McGladrey's annual gross revenue of up to $150,000 for the first year, $350,000 for the second year, and $450,000 for the third year."

Pacilio in January pleaded guilty to one count of filing a false tax return and admitted that, for "the 2015 through 2018 tax years, he filed individual income tax returns that omitted installment payments related to the sale of Clapboard

Hill Advisors to McGladrey," the statement said.

Pacilio omitted about $1.5 million that should have been reported as income or as capital gains, which resulted in a tax loss of $286,328 to the IRS, federal authorities said.

Pacilio, who is free on a $350,000 bond, has since paid the taxes he owed, federal authorities said.

He is due to report to federal prison on June 12, authorities said.