Old Saybrook Resident Arrested on Federal Tax Charge
For Immediate Release
U.S. Attorney's Office, District of Connecticut
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 DAVID ADAMS, 55, of Old Saybrook, was arrested today on a federal criminal complaint that charges him with one count of filing a false tax return.
ADAMS appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $500,000 bond secured by real property.
The complaint alleges that, on June 7, 2011, ADAMS sold his partnership interest in an online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although ADAMS told his accountant that he sold his partnership interest in 2011, ADAMS did not tell his accountant that he received $4,708,419.20. Accordingly, ADAMS’s 2011 tax return did not include the $4,708,419.20 in income ADAMS received as a result of the sale and instead showed ADAMS’ total income and tax liability for 2011 as substantially less than what should have been reported. The 2011 tax return also reflected that ADAMS had paid $220,000 in estimated tax payments during the year when, in fact, he paid only $100,000 in estimated tax payments for 2011.
The complaint alleges that ADAMS also made false statements on his tax returns for years 2002, 2009 and 2012. For example, on his 2012 tax return, ADAMS failed to report more than $1.3 million in cash he received into his personal bank account in that year. The complaint further alleges that ADAMS has an extensive history with IRS collections.
According to statements made in court, it is alleged that ADAMS owes approximately $4.7 million in back taxes, interest and penalties.
The charge of filing a false tax return carries a maximum term of imprisonment of three years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Updated April 14, 2016