Westport investment advisor Thomas Pacilio pleaded guilty to a federal tax offense.
According to the charges brought against him Pacilio and a business partner started Clapboard Hill Advisors LLC, a financial services firm, in 2011. Two years later, Pacilio launched Alcamo Holding Corporation Inc. (“Alcamo”), an 1120S corporation, and transferred his Clapboard Hill Advisors partnership interest to Alcamo.
In 2014, Pacilio, through Alcamo, and his partner, through a separate 1120S corporation, sold Clapboard Hill Advisors to McGladrey Wealth Management LLC. Under the sale agreement, McGladrey agreed to make a lump sum payment at closing, at which time Pacilio was to become an employee of McGladrey for three years subject to a non-competition provision. In addition to his McGladrey salary, Pacilio was to receive a $350,000 payment on each anniversary of the sale for three years during his period of employment ”“ and he was to receive a portion 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.
In pleading guilty, Pacilio admitted that, for the 2015 through 2018 tax years, he filed individual income tax returns that omitted installment payments related to the sale of Clapboard Hill Advisors to McGladrey. In total, he omitted approximately $1,476,425 that should have been reported either as ordinary income or as capital gains, which resulted in a tax loss of $286,328 to the IRS.
Pacilio pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced on April 6 and is now free on a $350,000 bail.
