Connecticut Accountant Admits to Evading More Than $400,000 in Taxes

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Connecticut Accountant Admits to Evading More Than $400,000 in Taxes

By Liz Hardaway
Journal Inquirer, Manchester, Conn.
(TNS)

Nov. 20 — A Middlebury man who ran a Naugatuck-based accounting business pleaded guilty in federal court to tax evasion, according to the U.S. attorney’s office.

Edward Sodlosky, 71, waived his right to be indicted and entered into the guilty plea in federal court in New Haven Wednesday, U.S. Attorney for the District of Connecticut David X. Sullivan said in a news release.

Through a scheme, the U.S. attorney’s office said Sodlosky failed to report almost $1.4 million in additional income, resulting in a tax loss to the government of more than $400,000.

He is scheduled to be sentenced by U.S. District Judge Sarala V. Nagala in Hartford on April 15, at which time he faces up to five years in prison, the U.S. attorney’s office said. He also will be required to make full restitution to the Internal Revenue Service, according to the U.S. attorney’s office.

He is free on a $50,000 bond pending his sentencing, the office said.

Sodlosky evaded taxes while he was a self-employed certified public accountant, or CPA. He also owned and operated an accounting business in Naugatuck, Edward J. Sodlosky, Certified Public Accountant, or “EJS-CPA,” according to the U.S. attorney’s office.

From 2016 to 2022, Sodlosky prepared and filed annual joint income tax returns with the IRS for him and his spouse, as well as annual partnership income tax returns for FinGLTD, an entity he owned with his spouse, the U.S. attorney’s office said.

“During this seven-year period, Sodlosky willfully cashed more than 2,000 client payment checks to hide income generated by EJS-CPA,” the U.S. attorney’s office said. “As a result, a substantial amount of EJS-CPA’s business receipts was diverted from EJS-CPA’s bank accounts and not reported” in his joint or partnership income tax returns.

Sodlosky then deposited the funds from these cashed checks, as well as client payment checks, into a network of business, personal and nominee accounts, according to the U.S. attorney’s office. He used and controlled about 15 different bank accounts to deposit business receipts and evade income taxes, the office said.

Through the scheme, Sodlosky failed to report $1,379,694 in additional income to the IRS, resulting in a tax loss of $422,720, the U.S. attorney’s office said.

Photo credit: designer491/iStock

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