New Britain Bakery Operator Sentenced for Tax Fraud

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIAN KOBRYN, 63, of Farmington, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to one day of imprisonment, time already served, and one year of supervised release, for filing false tax returns.  KOBRYN also was ordered to pay a $10,000 fine and more than $425,000 in back taxes, interest, and penalties.

According to court documents and statements made in court, KOBRYN and his wife own and operate Kasia’s Bakery in New Britain.  Until recently, Kasia’s Bakery routinely operated on a “cash only” basis.  During the 2010 through 2013 tax years, KOBRYN diverted $730,860 in cash that the business received, deposited the money into his and his wife’s personal bank accounts, and failed to pay $242,889 in federal taxes on the income.

The investigation revealed that KOBRYN attempted to conceal the diverted cash proceeds by regularly traveling to several branches of Farmington Bank to make cash deposits in amounts under $10,000 in order to evade the bank’s currency transaction reporting requirements.

To date, KOBRYN has paid the $242,889 tax due, as well as $50,000 toward the interest and penalties.  Judge Eginton ordered KOBRYN to pay the remaining interest and penalties before the expiration of KOBYRN’s term of supervised release.

Judge Eginton stated that he sentenced KOBRYN to time served in lieu of a longer term of incarceration based in part on KOBRYN’s serious health issues.

On June 2, 2015, KOBRYN pleaded guilty to one count of making a false statement on a federal tax return.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney David J. Sheldon.