New Haven Printing Company Owner Pleads Guilty to Federal Tax Offense
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 LOUIS GOLDBERG, 71, of New Haven, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of aiding and assisting in the filing of a false tax return.
According to court documents and statements made in court, GOLDBERG owns Good Copy Printing Center Inc. (GCP), a printing company located in New Haven. GCP employed GOLDBERG’s nephew, Ira Malkin, as a principal salesman, and Malkin earned substantial commissions from GCP based on sales made to customers. Between approximately 2003 and 2012, GOLDBERG was aware that GCP paid many of Malkin’s personal expenses. With Malkin’s consent, GCP reduced his 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. By reporting lower commissions paid, GCP also improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
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. GOLDBERG knew that Malkin had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse Malkin for the cost of the mailings, and then had GCP reduce Malkin’s 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. By reporting lower income, GCP again improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
Between 2003 and 2012, GCP underreported a total of $40,490 in Medicare taxes.
GOLDBERG is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on November 29, 2018, at which time he faces a maximum term of imprisonment of three years.
On February 27, 2018, Malkin pleaded guilty to one count of tax evasion and admitted that he failed to pay $484,581 in federal income taxes on more than $1.5 million in unreported income. On August 9, he was sentenced to six months of imprisonment and six months of home confinement. Malkin has repaid the IRS all of his back taxes, but still owes more than $700,000 in interest and penalties.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.