Stratford Company's Ex-CFO Pleads Guilty To Federal Tax Charge

Stratford CT

20 January, 2021

4:09 AM

Description

STRATFORD, CT — The former chief financial officer of a Stratford company pleaded guilty last week to a federal tax charge, according to the U.S. Attorney's Office of the District of Connecticut. Pamela Smith worked as the chief financial officer of home healthcare staffing agency Equinox Home Care LLC from about 2009 to 2018, a news release from the U.S. Attorney's Office said. During that time she helped its co-founder, Theresa Foreman, deceptively obtain money from the company, according to the news release. Payments to "ghost employees" went to Foreman, and bonus checks were issued to workers, who then cashed the checks and gave the money to Foreman, the news release said. The bonus checks were included on Form W-2s for some employees, according to the news release, causing them to overpay taxes. Foreman also received money through cashed mileage checks issued to two people who did not drive for the company, the news release said. Smith did not tell a tax return preparer about the funds Foreman deceptively obtained, and more than $600,000 was not reported on Foreman's 2014 tax return, according to the news release. Foreman pleaded guilty to one count of tax evasion and was sentenced in 2020 to one year and one day in prison, and ordered to pay about $642,000 in restitution, the news release said. Smith, 72, formerly of Guilford and now of Kirkland, Washington, pleaded guilty Jan. 12 to aiding in the preparation of a false tax return, according to the news release. She faces a maximum of three years in prison, and, as part of her plea agreement, the government submits Smith could foresee about $266,000 in tax loss, the news release said.