United States Attorney's Office District of Connecticut
Press Release

NEW YORK MAN WHO OBSTRUCTED THE IRS IS SENTENCED

David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL L. PENDLETON, 28, of Albany, New York, was sentenced yesterday, June 10, by United States District Judge Robert N. Chatigny in Hartford to two years of probation for corruptly obstructing and impeding the due administration of Internal Revenue Service laws.  Judge Chatigny also ordered PENDLETON to pay a fine in the amount $2,500 and to perform 200 hours of community service.

According to court documents and statements made in court, in 2005, PENDLETON was a self-employed landscaper in Albany.  In 2008, the Internal Revenue Service notified PENDLETON that he was liable for a deficiency in 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 $5,974.  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 pleaded guilty to the offense on February 1, 2010.

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

CONTACT:

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