Fayetteville Man Sentenced to 18 Months for Tax Evasion
Ordered to Pay $347,128 in Restitution
UTICA, NEW YORK – Edward J. Purcell, Sr., age 65, of Fayetteville, New York, was sentenced today to serve 18 months in prison for tax evasion.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
U.S. District Judge David N. Hurd also sentenced Purcell to 3 years of supervised release, to begin after his release from prison, and also ordered him to pay $347,128 in restitution to the Internal Revenue Service (“IRS”).
In December 2015, Purcell pled guilty to one count of tax evasion.
During the years 2008 through 2010, Purcell owned and operated American Roofing Company (“ARC”) in the Syracuse area. In this time period, he failed to report any of the income he received from ARC by not filing federal income tax returns, despite receiving taxable income in the amount of $655,937.
For the tax years 2008, 2009, and 2010, Purcell willfully evaded the payment of taxes on his individual income, which totaled $150,980, $333,614, and $171,343, respectively. The total tax loss for the years 2008 through 2010 was $231,362. Purcell also agreed to repay the IRS an additional $115,766, representing the tax loss for 2007.
Purcell concealed his income by depositing checks payable to ARC into nominee bank accounts, which he controlled through powers of attorney. Purcell set up these bank accounts in the names of his close friends and family members for the purpose of concealing his income from the IRS.
This case was investigated by IRS-Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.