OLD SAYBROOK, Conn. (WTNH) — 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, 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. 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.