The owner of a Milford construction business, who is also a successful poker player, has been sentenced to 14 months in prison for failing to pay more than $820,000 in income taxes.
Guy Smith, 63, of Shelton, must report to the Federal Bureau of Prisons to start serving his sentence on June 30. He is free on bond in the meantime.
Smith owns and operates Centerline Interiors LLC, a commercial interior contractor based on Stran Road in Milford which does metal framing work, partitions, ceilings and door frames for a range of clients, such as corporate offices, retail stores, hospitals, schools, hotels and restaurants.
According to the U.S. Attorney’s office, for the 2012 to 2016 tax years, Smith gave his tax preparer inaccurate information about his business’ income and expenses.
Assistant U.S. Attorney Michael S. McGarry said Smith failed to report income totaling $2,217,300, resulting in a tax loss of $821,415.
McGarry had asked U.S. District Court Judge Michael P. Shea to impose a sentence of approximately two years in prison.
“Smith was and remains a very successful businessman,” McGarry said, in a memorandum to the court. “He certainly was not struggling financially and was much more well off than many Americans could ever hope to be.”
The government claims Smith purposefully failed to report approximately $1.1 million in income from Centerline Interiors to either his tax preparer or the Internal Revenue Service. Smith plays poker in tournaments around the country and in the Bahamas. Prosecutors say he also concealed his gambling income, so he could avoid paying income taxes on more than $1 million in winnings.
Smith pleaded guilty to tax evasion in December.
Smith’s defense attorney, Tara Knight of New Haven, told the judge that her client’s incarceration would have an “extraordinary” effect on his business, which employs 42 full-time workers, resulting in the potential loss of jobs and financial hardship for his employees. She also noted that her client has “readily accepted full responsibility” for his actions.
During the sentencing proceeding Friday, Shea also ordered Smith to be on supervised release for two years after he finishes serving his sentence. Smith must pay all outstanding taxes, interest and penalties.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
