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Old Saybrook Man Faces Tax Evasion Upgrade
NEW HAVEN, CT – David Adams, 56, of Old Saybrook, is facing a significantly expanded legal battle after a federal grand jury returned a six-count superseding indictment charging him with multiple tax offenses. The charges build upon a 2016 indictment, alleging a decades-long pattern of dodging his tax obligations and actively deceiving the IRS.
The initial indictment in May 2016 accused Adams of one count of tax evasion and filing a false tax return for the 2011 tax year. This new indictment adds charges for filing false returns in 2009, 2011, and 2012, alongside additional counts of tax evasion for those years. Critically, the indictment also alleges Adams attempted to obstruct the administration of tax laws, suggesting a deliberate effort to thwart IRS investigations.
According to the superseding indictment, Adams’s tax delinquency stretches back to the early 1980s, becoming consistent from 1996 onward. He repeatedly engaged with IRS collections officers, consistently failing to pay estimated taxes despite repeated warnings. The indictment details a sale of an online floral business in 2002, generating $6,269,960 in taxable income. Adams allegedly claimed this income, then falsely told the IRS in 2003 he was submitting a $1,250,000 payment – a payment that never materialized.
The scheme didn’t stop there. Adams employed a certified public accountant, but allegedly fed the accountant deliberately false information. For the 2009 tax year, he claimed $550,000 in estimated tax payments when he’d only paid $425,000. The deception continued in 2011, with Adams reporting $220,000 paid when only $100,000 actually reached the IRS. These discrepancies were then used to create fraudulent tax returns.
The indictment lays out a particularly damning episode surrounding the 2011 sale of another online floral business. Adams received $4,708,419.20 wired directly into his bank account. Rather than reporting this income, he actively concealed it, failing to inform his accountant, providing false information about estimated payments, and even misleading a revenue officer. He allegedly claimed he was hoping to pay down back taxes but omitted the multi-million dollar influx of cash.
The deceit continued into 2012, with Adams receiving an additional $1,320,609.59 from the 2011 sale, again failing to disclose the income to his accountant or report it on his tax return. The U.S. Attorney’s Office, led by Deirdre M. Daly, and IRS Criminal Investigation, under the direction of Special Agent in Charge Joel P. Garland, are prosecuting the case. Adams now faces the prospect of significant penalties if convicted on these charges, a clear message that tax evasion will not be tolerated.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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