Old Say­brook man pleads guilty to sev­eral fed­eral tax of­fenses

The Middletown Press (Middletown, CT) - - NEWS - STAFF RE­PORTS

HART­FORD — A man pleaded guilty Tues­day to a six-count su­per­sed­ing in­dict­ment charg­ing him with var­i­ous tax of­fenses in­stead of pro­ceed­ing with a trial which was sched­uled to start Wed­nes­day, ac­cord­ing to a re­lease from the U.S. at­tor­ney’s of­fice.

David Adams, 56, of Old Say­brook, was charged with two counts of tax eva­sion, three counts of mak­ing and sub­scrib­ing a false tax re­turn and one count of at­tempt­ing to in­ter­fere with the ad­min­is­tra­tion of the In­ter­nal Rev­enue Ser­vice laws, the re­lease stated.

In the early 1980s, and con­tin­u­ing from 1996 on­ward, Adams was delin­quent in fil­ing his tax re­turns and pay­ing amounts owed to the IRS. Start­ing at least as early as 1998, he re­peat­edly en­gaged with IRS col­lec­tions of­fi­cers tasked with try­ing to get him into com­pli­ance with the tax laws. Al­though IRS col­lec­tions of­fi­cers re­peat­edly ad­vised Adams about his obli­ga­tions to pay es­ti­mated taxes, he con­tin­u­ally failed to pay those taxes on time or in suf­fi­cient amounts, the re­lease said.

As part of this tax-fraud scheme, he en­gaged the ser­vices of a cer­ti­fied pub­lic ac­coun­tant to pre­pare his per­sonal tax re­turns be­gin­ning in ap­prox­i­mately 1993, and then re­peat­edly failed to give the ac­coun­tant com­plete, ac­cu­rate in­for­ma­tion, ac­cord­ing to the re­lease.

In 2002, Adams sold an on­line flo­ral busi­ness, which ac­counted for a sig­nif­i­cant por­tion of more than $6 mil­lion in tax­able in­come he claimed on his 2002 tax re­turn. Al­though he rep­re­sented to the IRS in Au­gust 2003 he was en­clos­ing pay­ment of $1.25 mil­lion, no such pay­ment was en­closed and he never made the pay­ment, the re­lease said.

In June 2011, he sold his part­ner­ship in­ter­est in an­other on­line flo­ral busi­ness and re­ceived over $4.7 mil­lion wired into his per­sonal bank ac­count as part of the net pro­ceeds owed to him as a re­sult of the sale. Al­though he knew he owed sub­stan­tial taxes on that amount, he en­gaged in a num­ber of af­fir­ma­tive acts to con­ceal and at­tempt to con­ceal this in­come in or­der to evade the assess­ment of a tax. He failed to dis­close to the rev­enue of­fi­cer he had re­ceived the wired money in cash less than three weeks ear­lier, the re­lease stated.

He was re­leased on $500,000 bail pend­ing his sen­tenc­ing on Jan.11.

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