Ex-payroll manager for home health care company pleads guilty to tax fraud

The former payroll manager for a Stratford home health care company has pleaded guilty to tax fraud in relation to a scheme that lasted four years.

Innis Frederick, who now resides in Saint Cloud, Florida, worked for Equinox Home Care, LLC (EHC) in Stratford. The company was originally established as a partnership between Frederick”™s sister, Theresa Foreman, and another individual. In September 2012 the partnership ended, and Foreman was obligated by a court order to make payments to her partner for the purchase of the partner”™s interest in EHC.

Between approximately 2012 and 2016, Frederick assisted Foreman by processing payroll that caused checks to be issued to “ghost employees,” who did not actually work for EHC. The money paid to the ghost employees was actually paid to Foreman, who did not report the hundreds of thousands of dollars of income on her tax returns.

Frederick pleaded guilty to one count of conspiracy to defraud the U.S. and impede and impair the IRS, an offense that carries a maximum term of imprisonment of five years. He also agreed that the tax loss attributable to him as a result of his involvement in this scheme is approximately $248,827.

Frederick is released on a $20,000 bond pending sentencing, which is not scheduled.

Foreman was previously charged and convicted in relation to this scheme, and other conduct. She has been ordered to pay more than $600,000 in restitution to the IRS. Pamela Smith, former Chief Financial Officer of the home healthcare company, Pamela Smith, also was charged and convicted in a related case.