A Falmouth man has admitted guilt in a tax evasion case, as reported by the U.S. District Court in Portland. Jeffrey Riddle, 58, acknowledged his failure to pay federal income taxes from 2006 through 2014 despite filing returns that indicated he owed substantial amounts.

Court documents reveal that the IRS began collection efforts against Riddle in 2010 by filing liens and levies. In 2015, while still indebted to the IRS, Riddle founded Silica Marketing LLC and entered a profitable consulting contract with a major tire retailer. The business was registered under his then-wife's name, but its revenue stemmed solely from Riddle's consulting work, which he used for personal expenses.

Riddle misled an IRS officer by claiming he earned $6,000 monthly from Silica and provided a false document showing a bi-monthly salary of $3,000. He did not disclose his role as president and CEO of Silica or the significant income from his consulting agreement. Funds from Silica were used for personal expenses, including a down payment on a home on Great Diamond Island in 2016.

In 2017, Riddle established another company to replace Silica and continued his consultancy with the same tire retailer. By 2020, he sold part of this new company for $400,000, with $250,000 intended for tax debt placed in escrow but never paid to the IRS. On the sale day, he bought a Corvette titled under his company's name.

The potential penalties for Riddle include up to five years in prison and fines reaching $250,000 followed by up to three years of supervised release.

The investigation was conducted by IRS Criminal Investigation.