Earlier today, in federal court in Central Islip, Fred Towle, Jr., pleaded guilty to making and subscribing a false tax return for the calendar year 2012 that underreported business income in order to avoid paying the proper tax owed. The guilty plea was entered before United States Magistrate Judge A. Kathleen Tomlinson. When sentenced, Towle faces a statutory maximum of three years in prison and a fine of up to $250,000. As part of his plea, Towle has agreed to pay $307,427 in restitution, the full amount of his tax liabilities.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Justin Campbell, Assistant Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“By his guilty plea, Fred Towle, Jr., has admitted cheating the United States out of hundreds of thousands of dollars owed in taxes by filing a false tax return that concealed a considerable amount of income he had earned from his businesses,” stated United States Attorney Donoghue. “This Office, together with our partners at the FBI and the IRS, recognizes that tax evasion victimizes every law-abiding, taxpaying American and we will vigorously prosecute those like the defendant who believe they’re above the law.”
“Despite his attempt to evade tax payments, Towle could not evade the inevitable repercussions of his actions, as he will now have to repay everything he owes,” stated FBI Assistant Director-in-Charge Sweeney. “For anyone under the misguided notion that our government can be successfully manipulated, today’s guilty plea evidently says otherwise. While maintaining a consistent partnership with the IRS, the FBI will not cease to investigate such manipulative individuals.”
“Federal income tax compliance should be equally shared among all Americans, especially those who have held a public trust position,” stated IRS-CI Assistant Special Agent-in-Charge Campbell. “Mr. Towle’s plea today, serves as an important reminder that IRS-CI is committed along with the United States Attorney’s Office and our law enforcement partners in bringing to justice those who skirt their tax responsibilities.”
During the relevant time period, Towle was the sole owner of a company called East Coast Marketing, which was utilized by Towle to, among other things, consult with political candidates and assist homeowners in expediting approvals for permits made to various governmental entities in Suffolk County. According to court documents filed in connection with the case, in 2012, Towle falsely reported no taxable income from businesses controlled by him, including East Coast Marketing, despite earning approximately $246,000 in taxable corporate income for that year. In total, between tax years 2012 and 2014, Towle failed to declare approximately $1.2 million in income, resulting in a tax loss to the United States of approximately $307,427.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney and Catherine M. Mirabile are in charge of the prosecution.
FRED TOWLE, Jr.
Shirley, New York
E.D.N.Y. Docket No. 18-CR-368 (JMA)
United States Attorney’s Office