New Haven Printing Company Owner Sentenced for Federal Tax Offense

John H. Durham, United States Attorney for the District of Connecticut, announced that LOUIS GOLDBERG, 71, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven for his role in a tax avoidance scheme.

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 had some knowledge 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.

Judge Hall sentenced Goldberg to one year of probation for his role in this scheme.

Goldberg has paid the IRS approximately $105,000 in restitution, which includes the $40,490 in Medicare taxes he owed, interest and a substantial fraud penalty.

On September 7, 2018, Goldberg pleaded guilty to one count of aiding and assisting in the filing of a false tax return.

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 was investigated by the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.