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Norwalk Bookkeeper Faces Prison Time After Pleading Guilty To Tax Fraud

The bookkeeper faces a maximum of three years in prison and a fine of up to $100,000.
The bookkeeper faces a maximum of three years in prison and a fine of up to $100,000. Photo Credit: File

NORWALK, Conn. — A Norwalk bookkeeper pleaded guilty Thursday to tax fraud for failing to pay federal income taxes on nearly a quarter-million dollars that he stole from a private art firm in Manhattan, prosecutors said.  

Eddie Chan, 57, waived his right to be indicted and pleaded guilty before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of making a false statement on a federal income tax return.

While employed as a bookkeeper for the art firm, Chan withdrew funds from the firm’s business accounts without authorization from his employer between 2013 and 2015, according to court documents and statements made in court. 

Chan then used the money for personal expenses. 

He failed to declare a total of $271,166 in misappropriated funds on his federal income tax returns for 2013 and 2014, resulting in a loss of $78,214 to the Internal Revenue Service.

When sentenced in January, Chan faces a maximum of three years in prison and a fine of up to $100,000. He also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.

Chan was released on bond pending his sentencing.

The announcement was made by U.S. Attorney for Connecticut Deirdre M. Daly and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney David J. Sheldon.

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