States Attorney's Office District of Connecticut
|November 18, 2010||
ESSEX MAN ADMITS FILING FALSE TAX RETURNS
David B. Fein, United States Attorney for the District of Connecticut, announced that IAN PROUT, 38, of Essex, pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of filing a false tax return. The charge stems from PROUT’s failure to report more than $250,000 in income on his federal tax returns between 2005 and 2007.
According to court documents and statements made in court, from 2005 to 2007, PROUT was a self-employed race car specialist who owned and operated the Sports Car Driving Association, LLC. PROUT provided racetrack instruction at racing facilities in the Northeast. Typically, PROUT rented the facilities for the weekend and was paid to teach high-performance car owners how to drive and race their vehicles. PROUT also derived income by providing consulting services to car dealerships and marketing firms. PROUT deposited most of the income from his racetrack instruction events into his business banking account, but deposited the income from his consulting work into his personal bank account.
When preparing his tax returns, PROUT supplied information to his accountant about his business bank account, but failed to supply information about his personal bank account. By failing to tell his accountant about the income that he deposited into his personal bank account, PROUT ensured that his tax returns failed to report the total amount of income he received in each year.
In pleading guilty, PROUT admitted that, for the 2005 through 2007 tax years, he failed to report $251,136 in income, resulting in his underpayment of $74,481 in taxes for those years.
PROUT is scheduled to be sentenced by United States District Judge Janet C. Hall on February 4, 2011, at which time PROUT faces a maximum term of imprisonment of three years and a fine of up to $250,000. In addition, PROUT also will be required to pay back taxes, penalties, and interest to the IRS.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Sandra S. Glover.
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