North Franklin Man Pleads Guilty to Failing to Pay Taxes on Money He Misappropriated from Trust
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 60, of North Franklin, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to filing false tax returns.
According to court documents and statements made in court, SUDIK operated a dentistry practice, and also acted as a trustee of the Walter S. Sudik Trust, his uncle’s estate. In 2010 and 2011, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee. On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.
With respect to his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. In his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.
SUDIK pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on July 27, 2016.
SUDIK has agreed to pay back taxes, plus penalties and interest. In addition, he has agreed to pay full restitution to the four trust beneficiaries of the funds he took from the trust without authorization.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.