United States Attorney's Office District of Connecticut
Press Release

FORMER CONNECTICUT MAN SENTENCED TO FEDERAL PRISON FOR TAX EVASION

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that CHARLES H. PANKOW, age 37, formerly of Salisbury, Connecticut, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 12 months of imprisonment, followed by three years of supervised release, for tax evasion. Judge Covello also ordered PANKOW to pay a fine in the amount of $3000. On April 13, 2005, PANKOW waived indictment and pleaded guilty the offense.

According to documents filed with the Court and statements made in court, from approximately 1996 through January 2002, PANKOW was employed by Skip Barber Racing School, Inc., beginning as a salesman and eventually working his way up to the position of Vice-President of Special Projects. Despite receiving wage income totaling more than $500,000 for the years 1998 through 2001, PANKOW did not file federal individual income tax returns for those years and evaded the payment of taxes by maintaining a false Form W-4, claiming exemption from taxes, with Skip Barber Racing School, Inc., and by filing Forms 4868 (extension of time to file) for the years 1998, 1999, and 2000. PANKOW falsely claimed in the Forms 4868 that he had a total tax liability of zero for those years and, therefore, owed no taxes.

As a result of this tax evasion scheme, PANKOW failed to file returns for the tax years 1998 through 2001, failed to report total taxable income of $591,812 and failed to pay total taxes due and owing of $167,624.00.

“This was an especially egregious tax evasion scheme,” U.S. Attorney O’Connor stated. “Tax cheats should be aware they face not only a term of federal incarceration, but will also be required to pay all past-due taxes, plus penalties and interest.”

This case was investigated by Special Agents of the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Nora R. Dannehy.

CONTACT:

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