Norwalk Man Pleads Guilty to Tax Fraud Offense

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that EDDIE CHAN, 57, of Norwalk, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of making a false statement on a federal income tax return.

According to court documents and statements made in court, CHAN was employed as a bookkeeper for a private art firm located in New York City.  Between 2013 and 2015, CHAN withdrew funds from the firm’s business accounts without authorization from his employer, and used the money for personal expenses.  CHAN failed to declare a total of $271,166 in misappropriated funds on his federal income tax returns for 2013 and 2014, resulting in a loss of $78,214 to the Internal Revenue Service.

Judge Meyer scheduled sentencing for January 18, 2018, at which time CHAN faces a maximum term of imprisonment of three years and a fine of up to $100,000.  He also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.

CHAN was released on bond pending sentencing.

This case is being investigated by the Internal Revenue Service – Criminal Investigation Division and in being prosecuted by Assistant U.S. Attorney David J. Sheldon.