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Justice News

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

FOR IMMEDIATE RELEASE
Tuesday, February 23, 2016

Southport Man Pleads Guilty to Failing to Pay Taxes on Money He Stole from Benefactor

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ORVAL FURLONG, 72, of Southport, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to one count of tax evasion.

According to court documents and statements made in court, FURLONG was a life-long friend of a wealthy benefactor.  Over the years, the benefactor paid some of FURLONG’s debts and financed tuition for FURLONG’s children’s schools.  During the last years of the benefactor’s life, FURLONG hired home health aides to care for the benefactor.  During this time, the benefactor provided FURLONG with a stipend of approximately $8,000 to $10,000 per month.  The benefactor also employed the services of an attorney who acted as the benefactor’s power of attorney and oversaw the Benefactor’s finances.  FURLONG provided the attorney with a detailed itemization of the hours worked by the home health aides, the hourly rates for their services, and the total funds needed to pay them for the services provided.  The attorney then issued FURLONG checks from one of the benefactor’s bank accounts to pay the health aides.

From at least 2009 to 2011, FURLONG routinely inflated the true hours worked by the home health aides, and/or the applicable hourly rate.  FURLONG then paid the home health aides in cash or by check in an amount significantly lower than FURLONG had represented to the attorney.  FURLONG kept the difference and used the funds for his personal expenditures.  Through this scheme, FURLONG failed to report more than $500,000 in income on his 2009 through 2011 federal tax returns.

FURLONG is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on June 1, 2016, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.  FURLONG also has agreed to pay $105,693 in back taxes, plus applicable interest and penalties.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Topic(s): 
Tax
Component(s): 
Updated February 23, 2016