Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DONALD J. McCARTHY, 67, of East Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, for the tax years 1997 through 1999, 2001, 2003, and 2008 through 2011, McCARTHY, an attorney, filed federal personal income tax returns, but failed to pay the outstanding tax balances due and owing for those years, or failed to pay interest and penalties that had accrued on outstanding amounts. In addition, for the tax years 2012 through 2014, McCARTHY did not file personal income tax returns at all, and failed to pay taxes that were due and owing, as well as interest and penalties that had accrued on outstanding amounts.
The investigation revealed that McCARTHY attempted to evade the payment of income taxes by depositing his payroll checks into his personal bank account and then, shortly thereafter, withdrawing a substantial portion of the monies in cash and bank checks.
By June 2015, when he learned of the criminal investigation being conducted by the Internal Revenue Service, McCARTHY owed $1,437,037 in back taxes, interest and penalties.
Judge Underhill scheduled sentencing for December 4, 2017, at which time McCARTHY faces a maximum term of imprisonment of five years. McCARTHY also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
McCARTHY was released on a $50,000 bond pending sentencing.
This case was investigated by the Internal Revenue Service - Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Source: U.S. Department of Justice, Office of the United States Attorneys
