United States Attorney's Office District of Connecticut
Press Release

NEW YORK MAN PLEADS GUILTY TO TAX OBSTRUCTION CHARGE

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that MICHAEL L. PENDLETON, 28, of Albany, New York, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of corruptly obstructing and impeding the due administration of Internal Revenue Service laws.

According to court documents and statement made in court, in 2005, PENDLETON was a self-employed landscaper in Albany.  In 2008, the Internal Revenue Service notified PENDLETON that he underpaid his 2005 federal income tax in the amount of $28,623 based on the disallowance of expenses deducted on PENDLETON’s 2005 Schedule C.  The underpayment resulted in a tax loss to the Government in the amount of $4,974.  PENDLETON contested the IRS’ determination by filing a petition with the United States Tax Court and the matter was scheduled to go to trial in U.S. Tax Court in Albany on October 20, 2008.  Prior to the trial date, the IRS Office of Chief Counsel in East Hartford, Connecticut, requested that PENDLETON substantiate his claimed expenses.  In response, PENDLETON provided several letters, purportedly from various individuals, which stated that PENDLETON made payments to them for goods and/or services.  The IRS Office of Chief Counsel determined that the letters contained false information and forged signatures.

PENDLETON is scheduled to be sentenced by United State District Judge Robert N. Chatigny on April 22, 2010, at which time PENDLETON faces a maximum term of imprisonment of three years and a fine of up to $250,000.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant United States Attorney Deborah R. Slater.

CONTACT:

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