States Attorney's Office District of Connecticut
|September 1, 2010||
SHARON MAN SENTENCED TO FEDERAL PRISON FOR EVADING PAYMENT OF MORE THAN $1.4 MILLION IN TAXES
David B. Fein, United States Attorney for the District of Connecticut, announced that ALBERT HOLLAND, 70, of Sharon, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment, followed by three years of supervised release, for evading the payment of more than $1.4 million in federal taxes. On April 15, 2010, a jury found HOLLAND guilty of one count of tax evasion and two counts of filing false tax returns.
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.
Today, Judge Arterton ordered HOLLAND to pay back taxes, penalties and interest in the amount of approximately $2.26 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rahul Kale.
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