NEW HAVEN – The owner of a Southington liquid level float control mechanism manufacturing company and an alleged accomplice have been charged in a 20-count indictment by a grand jury in a New Haven federal court in a tax fraud scheme. They avoided paying $2.5 million in taxes and face up to 50 years in prison, according to the indictment.
David X. Sullivan, U.S. Attorney for the District of Connecticut, and Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in New England, on April 22 announced the indictments.
Michael Joseph Meade, 61, of Old Saybrook and Chet Lee West, 70, of Nebo, North Carolina, were charged with numerous tax fraud offenses in connection with Innovative Components LLC and subsequently Liquidlevel.com LLC of Southington.
The indictment was returned on April 8, and Meade and West were arrested and presented on April 22. Meade was detained pending a hearing in New Haven federal court scheduled for earlier today, and West is released on a $25,000 bond pending his arraignment in the District of Connecticut, which is scheduled for May 7.
The indictment charges Meade and West each with one count of conspiracy to obstruct and defeat the Internal Revenue Service, an offense that carries a maximum term of imprisonment of 5 years, five counts of attempts to interfere with administration of internal revenue laws, an offense that carries a maximum term of imprisonment of 3 years on each count, and seven counts of aiding or assisting the filing of false documents, an offense that carries a maximum term of imprisonment of 3 years on each count.
Meade also faces one count of tax evasion, an offense that carries a maximum term of imprisonment of 5 years, and six counts of failure to file a tax return, an offense that carries a maximum term of imprisonment of 1 year on each count.
The indictment alleges that Meade, who owned the two companies, has a federal tax obligation of approximately $2.5 million for the years 2001 through 2010, 2012, and 2013.
Since approximately 2016, Meade has attempted to evade the payment of his tax obligation in various ways, including by:
- Withdrawing large amounts of cash and purchasing cashier’s checks from his business accounts and using the funds for personal expenditures;
- Depositing company funds into a family member’s trust account;
- Transferring company funds to cryptocurrency wallets and accounts that he controlled;
- Establishing new business bank accounts with a different company name, Taxpayer Identification Numbers, Employer Identification Numbers, and using nominees;
- Notifying customers that he was no longer connected with his business and directing them to send payments to the newly opened bank account associated with a new TIN;
- Using a shell company to purchase a personal vacation property in Maine;
- Opening bank accounts using a false social security number.
The indictment further alleges that, beginning in 2021, Meade conspired with West to structure various financial transactions to obstruct the IRS from assessing and collecting Meade’s federal tax obligation. Meade and West also conspired to provide fraudulent tax-related information to customers of Meade’s business and to cause false information and false documents to be filed with the IRS.
