Owners of Danbury Flooring Company Plead Guilty to Federal Tax Charges

Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DAVID BENINCASA, 34, and SCOTT BENINCASA, 32, both of Danbury, waived their right to indictment and pleaded guilty yesterday in Hartford federal court to federal tax offenses.

According to court documents and statements made in court, DAVID BENINCASA and his brother, SCOTT BENINCASA, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers.  DAVID BENINCASA assisted SCOTT BENICASA with the daily operations of the business, but had primary responsibility for the financial aspects of the business.  For the 2008 through 2010 tax years, DAVID and SCOTT BENINCASA intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings.  During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.

The additional tax due and owing attributable to DAVID and SCOTT BENINCASA’s criminal conduct is $238,274 and $47,076, respectively.

In pleading guilty, SCOTT BENINCASA also admitted that, during an IRS civil audit, he submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.

DAVID BENINCASA pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 25, 2016.  SCOTT BENINCASA pleaded guilty to one count of filing a false tax return, which carries a maximum term of imprisonment of three years.  He is scheduled to be sentenced by Judge Chatigny on January 21, 2016.  Both defendants also will be ordered to pay full restitution, plus applicable interest and penalties.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.