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An Easton businessman has pleaded guilty to federal tax fraud charges and faces a maximum six-year prison term and possible $974,000 fine.
James L. McCarthy, 62, who owns American Boiler, Inc. and the Industrial Property Management company, both in Stratford, pleaded guilty Tuesday in U.S. District Court in New Haven, according to a press release from U.S. Attorney David B. Fein.
The release said checks received by AB for work done between 1999 and 2002 were deposited to IPM's checking account. "The income represented by those payments was never recorded in the books of AB, nor was it reported on AB's federal corporate tax returns for those years," the release said.
McCarthy pleaded guilty to one fraud count involving AB's federal tax return for 2000 and one count involving his personal tax return. AB showed gross receipts of $1,106,406 and taxable income of $30,808 for that year.
McCarthy, who lives on Adirondack Trail, will be sentenced on Oct. 22.
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