Innis Frederick, Tax Conspiracy, Connecticut 2022

Former payroll manager at a Connecticut-based home healthcare company, Innis Frederick, has pleaded guilty to a tax offense in federal court. Frederick, 61, of Saint Cloud, Florida, admitted to his role in a scheme that involved paying hundreds of thousands of dollars in false wages to ‘ghost employees’ who did not actually work for the company.

According to court documents, Frederick processed payroll checks for Equinox Home Care, LLC (ECH), a Stratford-based home healthcare company, between 2012 and 2016. During this time, he caused checks to be issued to ‘ghost employees,’ who were actually paid to Frederick’s sister, Theresa Foreman. The scheme resulted in a tax loss of approximately $248,827.

The scheme was uncovered after Foreman was previously charged and convicted of related crimes. She was ordered to pay over $600,000 in restitution to the IRS. Former Chief Financial Officer of ECH, Pamela Smith, was also charged and convicted in a related case.

Frederick pleaded guilty to one count of conspiracy to defraud the United States and impede and impair the IRS, an offense that carries a maximum term of imprisonment of five years. He was released on a $20,000 bond pending sentencing, which has not been scheduled.

The matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.

Frederick’s guilty plea marks another high-profile conviction in a case that highlights the importance of tax compliance and the consequences of tax evasion. The IRS continues to crack down on tax schemes and those who engage in them.

As the investigation and prosecution of tax crimes continue, it is essential for citizens to remain vigilant and report any suspicious activity to the authorities. By working together, we can prevent tax evasion and ensure that those who engage in it are held accountable.

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