Norwalk Man Pleads Guilty In $250,000 Federal Tax Case

Norwalk CT

19 April, 2021

3:31 PM

Description

NORWALK, CT — A 60-year-old Norwalk man waived his right to be indicted and pleaded guilty Monday to one count of filing of a false tax return in connection with a federal tax case, announced Acting U.S. Attorney Leonard C. Boyle and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England. Robert Colgan pleaded guilty before U.S. District Judge Victor A. Bolden during a hearing via videoconference. Colgan was accused of underreporting his income for several tax years. According to court documents and statements, Colgan controlled a business known as Colgan Financial Group, Inc., and he employed a bookkeeper to maintain the company's books. He also employed a return preparer to assist him in the preparation of both CFG's corporate tax returns and his personal income tax returns. Prosecutors said Colgan used CFG funds to pay for personal expenditures, but directed his bookkeeper to record the payments as a loan in the company's books. "As a result, Colgan's personal income tax returns for the 2013 through 2017 tax years underreported his income and resulted in a tax loss of more than $250,000," according to prosecutors. The offense of filing of a false tax return carries a maximum prison term of three years. He is released pending sentencing, which has not yet been scheduled. This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.