Norwalk Business Owner Sentenced To Prison For Tax Evasion
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Friday, January 30, ALAN R. PAGANO, 64, of Darien, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for tax evasion. He also was ordered to pay a $10,000 fine.
According to court documents and statements made in court, PAGANO is the president and majority owner of Pagano’s Retail, Inc., a wholesale seafood distribution business based in Norwalk. From 2006 to 2010, PAGANO diverted a total of $780,608 in cash that the business received, deposited the money into his personal bank account, and failed to pay $238,739 in federal taxes on the income.
Over the five year period, PAGANO structured cash deposits in amounts of less than $10,001 in order to evade his bank’s currency transaction reporting requirements. For example, in 2007, PAGANO made 16 currency deposits in amounts ranging from $9,000 to $9,900.
On October 29, 2013, PAGANO pleaded guilty to one count of tax evasion.
PAGANO has paid restitution of $238,739 to the Department of Treasury, but still owes substantial penalties and interest. As part of his sentence, Judge Underhill ordered PAGANO to cooperate with the Internal Revenue Service concerning his taxes, stay current with filing his tax returns, and pay the penalties and interest the IRS assesses for tax years 2006 to 2010.
PAGANO also forfeited an additional $90,000 in relation to the structuring of cash deposits.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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