States Attorney's Office District of Connecticut
|June 18, 2010||
WOODBRIDGE MAN PLEADS GUILTY TO TAX FRAUD CHARGE
David B. Fein, United States Attorney for the District of Connecticut, today announced that RANDALL W. FOLDY, 46, of Woodbridge, waived his right to indictment and pleaded guilty yesterday, June 17, before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of filing a false federal income tax return.
According to court documents and statements made in court, FOLDY operated Woodbridge Painting LLC during the years 2001 and 2005 as a partnership. The partners were Windom Trust and the Las Vegas-established Northern Light Foundation, supposedly a chapter of the Cancer Prevention and Treatment Institute of Arizona, which, as claimed by its organizer, was a tax-exempt organization. According to FOLDY, Windom Trust held a .5% interest in Woodbridge Painting and Northern Light held a 99.5% interest. Despite that allocation, 100% of Woodbridge Painting’s profit or income for the 2003 calendar year, $62,826, was reported to the IRS as having been assigned to Northern Light. In reality, the income of Woodbridge Painting went instead to an entity called Candlelight Management, also established in Las Vegas, and was used to pay FOLDY’s personal expenses, including credit card charges, some of which were for the expenses of a family vacation.
Because Woodbridge Painting reported its income to the Internal Revenue Service as being that of a partnership, it should have been reported as income on FOLDY’s 2003 federal income tax return, as it had been reported in the years 1995 through 1999. However, the income was not reported to the IRS.
Under the law, an assignment of income by a taxpayer does not relieve him of the obligation to pay his income tax.
FOLDY is scheduled to be sentenced by United States District Judge Janet C. Hall on September 3, 2010, at which time FOLDY faces a maximum term of imprisonment of three years and a fine of up to $100,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorney Calvin B. Kurimai.
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