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Westport resident Thomas Pacilio, age 64, was sentenced on Thursday, April 13 to six months in prison for omitting around $1,476,425 in profits in income tax returns between 2015 and 2018, according to the US Attorney's Office for the District of Connecticut.
According to federal officials, in 2011, Pacilio and his partner started Clapboard Hill Advisors LLC, a financial services business based in Westport.
Two years later in 2013, Pacilio then created Alcamo Holding Corporation Inc. and transferred his Clapboard Hill Advisors partnership interest to this new corporation.
In 2014, Pacilio and his partner then sold Clapboard Hill Advisors to McGladrey Wealth Management LLC through Alcamo and another separate 1120S corporation. Under the sale agreement, McGladrey agreed to make a lump sum payment at closing, as well as hire Pacilio for three years subject to a three-year non-competition provision.
Under the terms of the agreement, Pacilio would receive his salary in addition to a $350,000 payment on each anniversary of the sale for three years. Additionally, Pacilio would also get a part of McGladrey’s annual gross revenue of up to $150,000 for the first year, $350,000 for the second year, and $450,000 for the third year, federal officials said.
On Thursday, Jan. 5, Pacilio pleaded guilty to one count of filing a false tax return and admitted that between 2015 and 2018, he filed individual income tax returns that did not include several payments related to the sale of Clapboard Hill Advisors to McGladrey.
The more than $1.4 million that was omitted from these tax returns should have been reported as ordinary income or as capital gains and resulted in a $286,328 tax loss to the IRS.
Pacilio, who has since been released on a $350,000 bond, has since paid the taxes he owed.
He will report to prison on Monday, June 12. Additionally, he was also ordered to pay a $50,000 fine.
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