States Attorney's Office District of Connecticut
|April 4, 2011||
JURY FINDS WALLINGFORD TAX PROFESSIONAL GUILTY OF TAX EVASION
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found STAVROS GANIAS, also known as Steve Ganias, 69, of Wallingford, guilty of two counts of tax evasion. The trial began on March 10 and the jury returned the verdict late Friday, April 1, after less than one hour of deliberations.
According to the evidence presented during the trial, since 1986, GANIAS has operated Taxes International in Wallingford, through which he has provided accounting, bookkeeping, and tax preparation services for numerous individuals and small business clients. Prior to 1986, GANIAS served as an IRS Auditor and International Examiner, auditing Fortune 1000 companies in Connecticut and their foreign subsidiaries.
In 1998, GANIAS and Taxes International began providing services to Industrial Property Management, Inc. (“IPM”), which was responsible for security and maintenance at the Stratford Army Engine Plant under a contract with the U.S. Army. Between 1999 and 2003, GANIAS earned annual fees in excess of $100,000 from IPM, as well as income from other clients. However, rather than reporting all of the income he earned from IPM and other clients on his federal income tax returns, GANIAS recorded significant portions of it in his own books as non-income, claiming it was petty cash that he deposited into the bank or that it was an owner’s infusion of capital into his business, Taxes International.
For the 1999 through 2003 tax years, GANIAS reported less than half of his true taxable income, underpaying his tax liability by approximately $164,351.
GANIAS is scheduled to be sentenced by Senior United States District Judge Ellen Bree Burns on June 20, 2011, at which time GANIAS faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. He also will be required to pay back taxes, as well as any applicable penalties and interest, to the IRS.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Calvin B. Kurimai and Anastasia E. King.
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