Tax Cheat Indicted for $14M Refund Scam

Newington, CT – In a shocking case of tax evasion, Terry DiMartino, a 45-year-old insurance salesman, has been indicted on multiple tax charges, including corruptly interfering with the due administration of the internal revenue laws, filing false tax returns, and willfully failing to file tax returns.

According to the indictment, DiMartino mailed and caused to be mailed to the IRS false tax returns, including a return requesting a false $14 million refund. His scheme also involved submitting worthless bonds on a timely basis that purported to satisfy his tax liabilities, and using nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities.

The indictment alleges that DiMartino failed to file individual income tax returns on a timely basis for 2008 through 2012. If convicted, DiMartino would face a statutory maximum sentence of 14 years in prison, as well as be subject to fines.

The case was investigated by the IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Jennifer Laraia, Erin Pulice and Jason Scheff of the Justice Department’s Tax Division.

An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The indictment was unsealed last Thursday and a trial date has not been scheduled. Authorities are urging anyone with information about DiMartino’s alleged scheme to come forward.

Tax evasion is a serious crime that can have severe consequences for individuals and society as a whole. The IRS-Criminal Investigation is committed to investigating and prosecuting tax-related crimes to ensure that those who abuse the tax system are held accountable.

DiMartino is scheduled to appear in court for an arraignment at a later date. The public will be updated as more information becomes available.

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