Penultimate betrayal: Norwalk bookkeeper Penni Sherman, 53, was sentenced today to eight months in federal prison for stealing $418,197.09 from her own clients — small business owners who trusted her with their books. The fraud, which ran from 2011 to 2018, unraveled into a web of deception, personal indulgence, and tax evasion that left victims reeling and the IRS out over $125,000.
Sherman, who operated PSP Accounting & Bookkeeping, didn’t just dip her hands in the till — she emptied it. Over seven years, she funneled stolen funds directly into her personal credit card bills and luxury expenses, including repeated visits to salons. One client, a small business owner, lost more than $396,000 — nearly their entire operational reserve — only discovering the theft when financial records refused to reconcile.
When confronted, Sherman coughed up $165,920 — a fraction of what she stole — but the damage was already done. The partial repayment didn’t mask the depth of the betrayal, nor did it erase the false tax returns she filed for years. She failed to report both the embezzled cash and legitimate business receipts, depriving the IRS of $125,167 in rightful revenue.
On October 11, 2019, Sherman pleaded guilty in federal court to one count of wire fraud and one count of making and subscribing a false tax return. No excuses, no elaborate alibis — just a quiet admission of guilt after years of living off stolen money. U.S. District Judge Michael P. Shea handed down the sentence in Hartford, adding two years of supervised release, with the first two months to be served in home confinement.
Restitution will follow her beyond prison walls. Judge Shea ordered Sherman to pay $252,277.09 to her victims — the full remaining balance of the theft — and $125,167 in back taxes to the IRS, plus interest and penalties. It’s a debt that may never be fully repaid, especially given the trail of broken trust she left behind.
This case was investigated by the IRS Criminal Investigation Division and Homeland Security Investigations (HSI), and prosecuted by Assistant U.S. Attorney Jennifer R. Laraia. Sherman, who has been free on bond, must report to prison on August 13, 2021. For the small business owners she betrayed, justice is delayed — but finally, it’s moving forward.
Related Federal Cases
- Rosemarie Colazzo Sentenced for $700K Embezzlement Scheme · Connecticut
- Rebecca Block Pleads Guilty in $190K Embezzlement Scheme · Connecticut
- New York Resident Sentenced for ATM Skimming Scheme · Rhode Island
- Michelle Lefaoe Sentenced in $3M Homeowner Fraud Scheme · Connecticut
- Matthew Harwood Admits to $3.9M Stolen Goods Scheme · Connecticut
Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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