A Norwalk developer has been sentenced to two months”™ imprisonment, followed by one year of supervised release, for filing false tax returns.
Candido Valadares, also known as Candide Valadares, operates Norwalk-based landscaping businesses Candide”™s Landscaping & Water Gardens and Candide Contractor & Natural Pools. He also provided snow-removal services during the winter months.
According to John H. Durham, U.S. Attorney for the District of Connecticut, an investigation revealed that Valadares deposited receipts from his businesses into both his business and personal bank accounts. He also substantially underreported employee wages by paying certain employee wages out of his personal accounts.
Valadares used a tax return preparer to prepare his yearly tax returns. The tax preparer took figures from certain profit-and-loss statements obtained from Valadares or his bookkeeper to prepare the relevant federal tax returns.
Valadares was found to know that the profit-and-loss statements did not reflect all revenues deposited in his business and personal bank accounts, and substantially underreported payroll. As a result, Valadares”™ federal tax returns for 2009, 2010 and 2011 tax years underreported $488,182 in gross receipts, underreported his business payroll by approximately $350,000, and resulted in a loss of $165,763.52 to the U.S. Treasury.
U.S. District Judge Janet Bond Arterton in New Haven ruled that, in addition to prison time, Valadares must pay $165,763.52 in restitution and cooperate with the IRS to pay any additional civil penalties and interest that have accrued on his unpaid taxes.
Valadares pleaded guilty to one count of filing a false tax return on Nov. 16, 2017.
