United States Attorney's Office District of Connecticut
Press Release

SHERMAN MAN SENTENCED TO PRISON FOR FAILING TO PAY FEDERAL INCOME TAXES

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that LEONARD WIDMAN, 54, of Sherman, was sentenced today by United States District Judge Mark R. Kravitz in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for failing to pay more than $170,000 in federal income tax.  Judge Kravitz also ordered WIDMAN to perform 300 hours of community service during his term of supervised release.  On April 30, 2009, WIDMAN pleaded guilty to one count of tax evasion.

According to court documents and statements made in court, WIDMAN owned a sole proprietorship known as Phase II Construction, which performed general contracting services in New York and Connecticut.  Phase II Construction had a business checking account, into which WIDMAN deposited all business receipts and from which he paid both his business and personal expenses using checks and debit card transactions.

For the 1997, 1998, and 1999 tax years, WIDMAN filed false U.S. individual income tax returns and made false statements and representations to employees of the Internal Revenue Service.  In a series of interviews with IRS agents in 2003 and 2004, WIDMAN falsely represented the nature of dozens of expenditures made from the Phase II Construction checking account as legitimate business expense.  These expenditures included tens of thousands of dollars in payments for an extensive renovation done to WIDMAN’s home, personal gym equipment, family meals, marina and boat fees, vacations, furniture, and clothing.  In addition, WIDMAN told IRS investigators that he had received loans and gifts of cash from family members and friends, which would be non-taxable sources of income, when, in fact, he had not.

From 1997 to 1999, WIDMAN failed to pay $173,355 in federal income tax and self-employment tax.  Today, Judge Kravitz ordered WIDMAN to pay that amount to the IRS.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant United States Attorney Sarah P. Karwan and Senior Litigation Counsel Christopher W. Schmeisser.

CONTACT:

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