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Hamden Man Sentenced for Tax Evasion
A 49-year-old man from Hamden, Connecticut has been sentenced to six months in prison for tax evasion. IRA MALKIN, who worked as a principal salesman for Good Copy Printing Center Inc. (GCP), was ordered to serve his term followed by three years of supervised release.
During his supervised release, MALKIN must spend six months in home confinement and perform 200 hours of community service. He was also ordered to report to prison on October 11, 2018.
According to court documents, MALKIN earned substantial commissions from GCP based on sales made to customers. However, the company reduced his commissions by the amount of personal expenses it paid for him, and then reported to the IRS that he earned less income than he truly did.
The scheme, which lasted from approximately 2003 to 2012, resulted in MALKIN underreporting more than $1.5 million in income and failing to pay $484,581 in federal income taxes. He has since paid all of his back taxes, but still owes the IRS over $700,000 in interest and penalties.
MALKIN pleaded guilty to one count of tax evasion on February 27, 2018, and was released on a $50,000 bond. The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Through his scheme, MALKIN used a complex arrangement with Comcast to further underreport his income. He had GCP pay the postage expense for Comcast mailings, had Comcast reimburse him for the cost, and then had GCP reduce his earned commissions by the amount of postage paid.
The tax evasion scheme resulted in significant financial losses for the U.S. government, and highlights the importance of honest reporting and compliance with tax laws. MALKIN’s prison sentence serves as a reminder of the consequences of committing such crimes.
Key Facts
- State: Connecticut
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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