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CT Woman Failed To Report $855K Withdrawal From Business, Feds Charge

Money Photo Credit: Pixabay/NikolayFrolochkin

A 58-year-old Connecticut woman has pleaded guilty to withdrawing about $855,000 from her home cleaning business and failing to report the proceeds on her tax forms.

Kathryn Pocock, of New London County, pleaded guilty to one count of tax evasion on Wednesday, Sept. 15, according to Acting United States Attorney for the District of Connecticut Leonard Boyle. 

Investigators found that Pocock, a resident of Uncasville, withdrew the funds from Sunshine Cleaners, LLC, between 2015 and 2019, and failed to report them on tax forms for the business and on her federal income tax returns, the US Attorney's Office reported. 

Pocock cashed client checks that had been paid to the business and deposited them into her personal bank account, Boyle said. She would also reportedly pay employees "under the table."

Investigators also found that Pocock gave false spreadsheets to her tax preparer and documents that "significantly understated her income and employee-related expenses," Boyle said.

She is set to be sentenced on Wednesday, Dec. 8.

The US Attorney's Office said Pocock agreed to pay $213,965 in restitution to the IRS and $33,514 to the State of Connecticut.

She was released pending sentencing.

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