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United
States Attorney's Office District of Connecticut |
March 18, 2004 |
WOODBURY MAN PLEADS GUILTY TO FEDERAL MISDEMEANOR TAX CHARGE The United States Attorney's Office for the District of Connecticut announced that WAYNE E. PRATT, age 60, of Woodbury, Connecticut, pleaded guilty today in federal court to a one-count Information that charges him with filing a false tax return. PRATT's plea of guilty was accepted by United States Magistrate Judge Donna F. Martinez this afternoon in Hartford. According to the Information filed with the Court, between approximately 1984 until approximately 2003, PRATT, the president of Wayne E. Pratt, Inc., an antique business with shops in Middlebury, Connecticut and Nantucket, Massachusetts, did business with an individual known to the United States Attorney's Office. The individual owns and operates companies that do business with the State of Connecticut. In approximately May 1997, the individual requested that PRATT purchase a condominium located in Washington, D.C., but informed PRATT that the individual should not be listed as the purchaser of the condominium. PRATT agreed to purchase the condominium based on the understanding that the individual would provide the money for the purchase and that PRATT would suffer no financial loss as a result of the transaction. Prior to the purchase of the condominium, the same individual informed PRATT that the seller wanted an additional $5000 for the furniture, even though the individual knew that any furniture was not worth that amount. The individual provided an additional $5000 to PRATT, which PRATT than paid to the seller. In approximately May 1997, the individual provided PRATT with two checks that were primarily to cover the costs associated with the purchase of the condominium and furniture. The checks were made payable to Wayne Pratt, Inc., and PRATT and the individual involved agreed that the financial transactions would be reflected on the books of the business in a way that would disguise the actual use and nature of those funds. On or about June 12, 1997, PRATT purchased the condominium for $68,500 and the contents of the condominium for $5000. On or about December 30, 1999, PRATT sold the condominium for approximately $37,500, and subsequently understated his capital gain, by taking a $24,773 loss from the condominium sale to which he was not entitled, on his 1999 federal personal income tax return. PRATT admits that he filed a false return, as he and the individual had previously agreed that PRATT would be reimbursed for any losses related to the condominium. In February 2000, PRATT and the individual reconciled the expenditures related to the condominium and determined that the individual owed PRATT approximately $21,952. The United States Attorney's Office stated that the investigation is continuing. It is this Office's practice not to comment on ongoing investigations. And as this investigation continues, it is this Office's strong preference that individuals with knowledge of this federal investigation and those who believe they have knowledge of this federal investigation decline comment, on or off the record, as well. This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nora R. Dannehy and Eric J. Glover. | |
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