States Attorney's Office District of Connecticut
|April 15, 2010||
FEDERAL JURY FINDS SHARON RESIDENT GUILTY OF TAX EVASION
Nora R. Dannehy, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found ALBERT HOLLAND, 70, of Sharon Hill Road, Sharon, guilty of one count of tax evasion and two counts of filing false tax returns. The trial began on Monday, April 12, and the jury returned the verdict this afternoon after deliberating for approximately three hours.
According to the evidence presented during the trial, in 1998, the Internal Revenue Service notified HOLLAND that he owed $1,421,498.67 in unpaid taxes, penalties and interest dating back to 1979. HOLLAND had failed to file a tax return or underpaid his taxes for several years since that time. On November 25, 1998, HOLLAND made an Offer in Compromise with the IRS that claimed that he was only able to pay $120,000 of the debt. However, at the time HOLLAND made the offer, he was involved in a lawsuit in which his partnership had demanded from Active Media Services millions of dollars for services that HOLLAND and his partner had rendered. In 1999, while HOLLAND was challenging the IRS’s rejection of his Offer in Compromise, HOLLAND and his partner settled the lawsuit for approximately $4.65 million.
Rather than pay the IRS, HOLLAND moved the judgment proceeds to “Jawbone,” an entity he formed in the name of his four children. Jawbone purchased a house in Kent, Connecticut, in which HOLLAND and his wife lived. HOLLAND held himself out as the owner of the house, and explained to certain individuals that he transferred his assets to Jawbone to avoid tax liability.
Over the next five years, HOLLAND rebuffed IRS attempts to collect the money he owed. HOLLAND continued to claim that he did not have assets with which to pay his debt to the IRS, and in filings, which he filed under penalties of perjury, he claimed that he had not transferred any assets of value in the previous 10 years.
HOLLAND also filed false tax returns for the 2002 and 2003 tax years. HOLLAND claimed he had no income for those years when, in fact, he earned at least $40,000 in 2002 and more than $115,000 in 2003.
United States District Judge Janet Bond Arterton has scheduled sentencing for July 2, 2010, at which time HOLLAND faces a maximum term of imprisonment of 11 years and a fine of up to $100,000. HOLLAND also will be required to pay back taxes, penalties and interest to the IRS.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rahul Kale, with the assistance of law student intern Elizabeth Nielsen.
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