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Justice News

Department of Justice
U.S. Attorney’s Office
District of Connecticut

FOR IMMEDIATE RELEASE
Monday, April 30, 2018

Norwalk Landscaper to Serve Federal Prison Time for Filing False Tax Returns

John H. Durham, United States Attorney for the District of Connecticut, announced that CANDIDO VALADARES, also known as Candide Valadares, 57, of Norwalk, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to two months of imprisonment, followed by one year of supervised release, for filing false tax returns.

According to court documents and statements made in court, VALADARES operates two Norwalk-based landscaping businesses, Candide’s Landscaping and Water Gardens, LLC and Candide Contractor & Natural Pools, LLC.  He also provides snow-removal services to his clients during winter months.  An investigation revealed that VALADARES deposited receipts from his businesses into both his business and personal bank accounts.  He also substantially underreported employee wages by paying certain employee wages out of his personal accounts.

VALADARES used a tax return preparer to prepare his yearly tax returns.  The tax preparer took figures from certain profit-and-loss statements obtained from VALADARES or his bookkeeper to prepare the relevant federal tax returns.  VALADARES knew that the profit-and-loss statements did not reflect all revenues deposited in VALADARES’ business and personal bank accounts, and substantially underreported payroll.  As a result, VALADARES’ federal tax returns for 2009, 2010 and 2011 tax years underreported $488,182 in gross receipts, underreported his business payroll by approximately $350,000, and resulted in a loss of $165,763.52 to the U.S. Treasury.

VALADARES is required to pay $165,763.52 in restitution, and cooperate with the IRS to pay any additional civil penalties and interest that have accrued on his unpaid taxes.

On November 16, 2017, VALADARES pleaded guilty to one count of filing a false tax return.

This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Topic(s): 
Tax
Component(s): 
Updated April 30, 2018