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Justice News

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

FOR IMMEDIATE RELEASE
Friday, January 23, 2015

Woodbridge Attorney Sentenced To Prison For Failing To Pay Nearly $400k In Federal Income Taxes


Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERRY GRUENBAUM, 59, of Woodbridge, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $1.3 million in income over a six-year period.

According to court documents and statements made in court, from 2005 to 2010, GRUENBAUM, an attorney, failed to report approximately $1,310,100 in taxable income on his federal tax returns.  For the 2005, 2006 and 2007 tax years, GRUENBAUM filed tax returns that he knew significantly understated his actual taxable income, and for the 2008, 2009 and 2010 tax years, he failed to file any tax returns.  Through this scheme, GRUENBAUM failed to pay $394,226 in additional tax due.

GRUENBAUM also took steps to make it difficult for the IRS to determine his true income, including calculating the gross receipt figures for one of his businesses by reviewing just one of a number of the business’s bank accounts that he knew had reportable income.  He also utilized corporate bank accounts to pay his personal expenses, and received compensation for services rendered from at least three different corporations in the form of stock shares and salaries, and failed to report this income on his tax returns. 
GRUENBAUM is required to pay approximately $877,646 in back taxes, penalties and interest.

On July 15, 2014, GRUENBAUM pleaded guilty to two counts of filing a false federal tax return.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov

Component(s): 
Updated March 18, 2015