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05/24/2016 04:30 PMOn May 3, a federal grand jury in New Haven returned an indictment charging David Adams, 55, of Old Saybrook, with tax evasion and filing a false tax return. Adams, who was arrested on a federal criminal complaint on April 14, appeared May 13 before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges in the indictment.
According to U.S. Attorney for the District of Connecticut Deirdre M. Daly and Special Agent in Charge of IRS Criminal Investigation in New England Joel P. Garland, as alleged in the indictment, Adams sold an online floral business in 2002, which accounted for a significant portion of $6,269,960 in taxable income he claimed on his 2002 tax return. Although Adams represented to the IRS on or about Aug. 8, 2003 that he was enclosing payment of $1,250,000, no such payment was enclosed and such tax was still outstanding as of June 2011.
The indictment further alleges that on or about June 7, 2011, Adams sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although he knew that he owed substantial taxes on that amount, Adams engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax.
The indictment charges Adams with one count of tax evasion, an offense that carries a maximum term of imprisonment of five years, and one count of filing a false tax return, an offense that carries a maximum term of imprisonment three years.
Adams owes approximately $4.6 million in back taxes, interest, and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012.
Daly stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.