Hamden Man Sentenced to Prison for Tax Evasion
John H. Durham, United States Attorney for the District of Connecticut, announced that IRA MALKIN, 49, of Hamden, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment, followed by three years of supervised release, for tax evasion. During his term of supervised release, MALKIN must spend six months in home confinement and perform 200 hours of community service.
According to court documents and statements made in court, MALKIN worked as a principal salesman for Good Copy Printing Center Inc. (GCP), a printing company located in New Haven. MALKIN earned substantial commissions from GCP based on sales made to customers. Between approximately 2003 and 2012, GCP paid many of MALKIN’s personal expenses. With MALKIN’s consent, GCP reduced MALKIN’s commissions by the amount of personal expenses the company paid. GCP then reported to the IRS through filed W-2 forms that MALKIN had earned substantially less income than he truly earned.
In addition, GCP handled printing jobs for Comcast, which included GCP mailing out flyers and paying the relevant postage expense with the expectation that GCP would subsequently be reimbursed for that expense. MALKIN had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse him for the cost of the mailings, and then had GCP reduce his earned commissions by the amount of postage paid by GCP. Through this arrangement, between approximately 2009 and 2012, GCP further underreported MALKIN’s income on W-2 forms filed with the IRS.
Through this scheme, MALKIN underreported more than $1.5 million in income, and failed to pay $484,581 in federal income taxes.
MALKIN has paid all of his back taxes, but still owes the IRS more than $700,000 in interest and penalties.
On February 27, 2018, MALKIN pleaded guilty to one count of tax evasion.
MALKIN, who is released on a $50,000 bond, was ordered to report to prison on October 11, 2018.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.