A Woodbridge man who embezzled nearly $1 million from his family’s Orange-based food company has been sentenced to 21 months in federal prison for tax evasion.
Matthew V. Blackwell, 41, was sentenced Friday in a proceeding before U.S. District Court Judge Sarah A.L. Merriam.
After Blackwell serves his sentence, he will be on supervised release for two years, and he must perform 120 hours of community service. Merriam also ordered Blackwell to pay a $10,000 fine.
Blackwell pleaded guilty to one count of tax evasion in December. He is currently free on bond and must report to prison on May 5.
At the time of the theft, Blackwell was working as vice president of operations at his family’s food company, Aurora Products Inc. in Orange. It is known for its dried fruits, nuts, granola and trail mixes, which are found in grocery stores around the country.
Blackwell’s mother, Stephanie Blackwell, founded the company.
According to the U.S. Attorney’s office, between 2012 and 2016, Matthew Blackwell embezzled $927,143 from the company by creating false purchase orders and invoices that he presented to the company controller, who had no knowledge of their fraudulent nature. The company issued payment checks, which Blackwell then deposited in a business checking account he controlled. He then transferred the money to his personal bank accounts, prosecutors said.
Additionally, Matthew Blackwell filed federal income tax returns that omitted the embezzled income for the 2012 through 2016 tax years, resulting in a tax loss of $285,361 to the Internal Revenue Service. According to the government, Blackwell has paid his back taxes, but still owes interest and penalties.
The IRS’ Criminal Investigation Division investigated the case, which was prosecuted by Assistant U.S. Attorney Hal Chen.
Attorney Andrew Bowman of Westport, who represents Matthew Blackwell, said in a pre-sentencing memorandum to the court that his client had been addicted to opioids including fentanyl and other substances.
According to Bowman, his client’s last drug use was in the spring of 2017. Bowman asked the court to consider Blackwell’s efforts to turn his life around in determining a sentence.
“To be clear, Mr. Blackwell does not claim, and we do not argue, that his drug addiction was an excuse for his conduct,” Bowman wrote, in the memorandum. “Rather, it is his extraordinary efforts and success in rehabilitating himself that is so remarkable and for which we ask the court’s consideration in this sentencing.”
Blackwell wrote in a letter to the judge that he and his mother are extremely close, and she has always been there for him. He credited her with providing him with the support to get off drugs.
“Not a day has gone by in over 5 years now that I haven’t woken up in the morning, or gone to bed at night, without thinking about my shame and remorse for betraying the trust of one of the most important people in my life, my mother,” Blackwell wrote, in the letter.
Stephanie Blackwell also wrote to the court, asking for leniency.
“I love my son and truly believe that Matt has worked tremendously hard to build his life back up from the brink,” she wrote. “He addressed his faults and has paid a tremendous price for actions taken over 5 years ago. Matthew knows what he did was wrong, and would never endanger his family again.”
Federal prosecutors, in a pre-sentencing memorandum, indicated they recognized Matthew Blackwell’s “commendable recovery from his serious drug addiction.”
However, prosecutors asked for Blackwell to receive a term of incarceration of up to 37 months, citing how he evaded income tax for five years on a large amount of fraudulently obtained income.
Such a sentence, the government asserted, “would communicate to the public that tax evasion is a serious crime that carries real consequences.”
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
