An Old Saybrook businessman pleaded guilty to tax evasion and other charges this week for failing to pay nearly $5 million in taxes dating back to 2002.
David Adams, 56, the founder of Flowers USA and a principal of Saybrook Realty Partners, had been scheduled to go on trial Tuesday when he entered the guilty plea, according to the U.S. Attorney’s Office.
Adams pleaded guilty to a six-count superseding indictment charging him with two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws, the U.S. Attorney’s Office said.
Prosecutors said Adams engaged in a more than 16-year effort to dodge the IRS’ attempts to collect back taxes, including bouncing checks, making delayed or partial payments, and claiming he lacked funds to pay the IRS while failing to disclose more than $6 million in income from the sale of an online floral business.
He also filed false and fraudulent federal tax returns by repeatedly giving the accountant preparing his returns false and incomplete information, the U.S. attorney’s office said.
As of Oct. 2016, Adams owed more than $4.7 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011 and 2012, the U.S. attorney’s office said. IRS collections officers had been trying to get Adams to comply with tax laws since at least 1998.
He faces a maximum of five years in prison for each tax evasion offense, a maximum of three years for each count of filing a false tax return, and a maximum of three years on the interference charge.
He is free on $500,000 bond pending sentencing by U.S. District Judge Vanessa L. Bryant on Jan. 11, 2018.
Natalie Missakian can be reached at news@newhavenbiz.com
