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United States Attorney's Office District of Connecticut
Press Release

     
June 30, 2005

BRANFORD WOMAN PLEADS GUILTY TO TAX FRAUD

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that SHIRLEY G. GRAYBILL, age 69, of Branford, Connecticut, pleaded guilty in federal court in New Haven yesterday to one count of making and subscribing to a false 2002 tax return. As was revealed in Court during the plea proceeding, the Triple Diamond Foundation was an entity created by GRAYBILL and her spouse purportedly to fund cancer research, but which that did not have tax-exempt status from the Internal Revenue Service. GRAYBILL and her spouse controlled the Triple Diamond Foundation and its bank account and executed financial transactions through the account.

During the 2002 tax year, GRAYBILL and her spouse transferred approximately $350,000 from the Triple Diamond Foundation account and used those funds as income and thus failed to pay approximately $93,293 in federal taxes, causing a tax loss to the U.S. Treasury.

On or about October 13, 2003, GRAYBILL filed a tax return with the Internal Revenue Service in which she failed to claim her actual taxable income, when she in fact knew it to be approximately $316,519.79. She signed a declaration to the verity of the return that was made under the penalty of perjury, and admits to these actions today. As part of the plea proceeding, GRAYBILL has agreed to pay the U.S. Treasury $93,293 in taxes plus penalties and interest for the tax year 2002.

GRAYBILL's husband, Dale L. Graybill pleaded guilty on June 15, 2005 to mail fraud and tax fraud and is scheduled to be sentenced by Senior United States District Judge Peter C. Dorsey on September 9, 2005, at which time he faces a maximum penalty of eight years' imprisonment, fines of up to $350,000, and a three-year period of supervised release. Court papers indicate that Ms. Graybill acknowledged and agreed that more than $10,000 of the income not reported on her and her husband's 2002 joint tax return was derived from criminal activity.

GRAYBILL will be sentenced by Judge Dorsey on September 9, 2005, at which time she faces a maximum penalty of three years' imprisonment, fines of up to $100,000, and a one year period of supervised release. GRAYBILL has also agreed to waive any claim, right or interest in forfeited asset and real estate valued at over $300,000 that had been purchased by her and her husband Dale Graybill, with fraudulently obtained funds.

U.S. Attorney O'Connor stated that "it is every citizen's obligation to honestly report and pay taxes. Those who attempt to hide assets and cheat on their taxes cheat their fellow citizens. Such conduct will be vigorously investigated and prosecuted."

The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation and is being prosecuted by Assistant United States Attorney Michael S. McGarry of the United States Attorney's Office Securities and Investor Fraud Unit.

 

CONTACT:

 

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov

 

 

 

 

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