State Employee Pleads Guilty To Tax Evasion

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL CARTER, 51, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of tax evasion.

This matter stems from an Internal Revenue Service investigation into high income State of Connecticut employees who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns.  The investigation revealed that certain state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.

According to court documents and statements made in court, CARTER has been employed by the Connecticut Department of Mental Health and Addiction Services, working as a nurse at the Connecticut Valley Hospital in Middletown since 2005.  CARTER submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding.  As a result, no money was withheld from his wages.  During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.

Judge Thompson scheduled sentencing for April 14, 2015, at which time CARTER faces a maximum term of imprisonment of five years and a fine of up to $250,000.  He also is required to pay back taxes, plus interest and penalties.

CARTER was charged by indictment on April 9, 2014, and is currently released on bond.

This ongoing investigating is being conducted by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Susan Wines.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov