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Press Release

North Franklin Man Sentenced to Prison for Tax Fraud

For Immediate Release
U.S. Attorney's Office, District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 62, of North Franklin, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to three months of imprisonment, followed by one year of supervised release, for tax fraud.

According to court documents and statements made in court, SUDIK operated a general dentistry practice, and also served as the trustee of the Walter S. Sudik Trust, a trust his uncle created. The primary purpose of the Trust was to provide money to Walter Sudik’s living siblings or their spouses to ensure they were properly cared for in their remaining years. Walter Sudik died in July 2010. Following his uncle’s death and while serving as the trustee, 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.

On his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. On his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.

Judge Arterton ordered SUDIK to pay $63,229, plus interest and penalties, to the Internal Revenue Service, and a total of $65,317 to three of the four beneficiaries of the Trust. The fourth beneficiary, SUDIK’s mother, did not wish to be part of a restitution order. SUDIK previously returned $116,488 to the four Trust beneficiaries after he learned he was under criminal investigation. Also, just prior the sentencing hearing, his attorney tendered each of the three beneficiaries a check in the amount of $10,000. The beneficiaries will receive restitution before the IRS.

On May 10, 2016, SUDIK pleaded guilty to one count of filing a false tax return. He was ordered to report to prison on or before September 26, 2017.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Updated July 25, 2017

Financial Fraud