Connecticut Transportation Company Owner Admits to Filing False Tax Returns

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that WILLIAM SCALZI, 61, of Durham, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to a tax offense related to his filing of false tax returns.

According to court documents and statements made in court, Scalzi, the owner of Transportation General, Inc., of West Haven, understated his taxable income by running personal expenses through his company.  Scalzi used his company’s credit cards to pay for numerous personal expenses, which were deducted as business expenses on Transportation General’s corporate tax returns.  He also did not include these personal expenses as income on his personal tax returns for the 2007 through 2010 tax years.

Scalzi pleaded guilty to one count of subscribing a false tax return, an offense that carries a maximum term of imprisonment of three years.  Scalzi also has agreed to make $297,319.31 in restitution to the IRS, which will satisfy his criminal and civil tax liabilities for the 2007 through 2010 tax years.  A sentencing date is not scheduled.

This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.