United States Attorney's Office District of Connecticut
Press Release

COUPLE WHO FAILED TO FILE FEDERAL INCOME TAX RETURN IS SENTENCED

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that RICHARD PERROTTI, age 46, and BARBARA PERROTTI, age 49, formerly of Hamden, were sentenced today on their convictions for failing to file a federal income tax return. In proceedings this afternoon in Bridgeport federal court, United States Magistrate Judge Holly B. Fitzsimmons sentenced each of the PERROTTIS, who are married to one another, to three years of probation and ordered each to perform 300 hours of community service.

On December 10, 2004, the PERROTTIS pleaded guilty to the charge, admitting that from 1995 to 1998, they operated a business in Branford, Connecticut, called Old New England Financial Group, Inc., and, as part of the business loaned money. Many of the loans were unsecured and in cash at usurious rates in violation of state law. Both PERROTTIS were previously prosecuted by the State of Connecticut for the illegal loan business.

During the years 1995 to 1998, the PERROTTIS earned taxable income from the loan business. In April 1998, they were required to file a U.S. Individual Income Tax Return for the year 1997 by virtue of having received gross income in that year in the amount of $757,582.06. In pleading guilty, the PERROTTIS admitted that they willfully failed to file a federal tax return for 1997 in violation of federal law. They owed $238,923 in taxes for 1997.

As part of their plea agreement, BARBARA and RICHARD PERROTTI have agreed to pay the Internal Revenue Service $405,902.75 plus penalties and interest for income received and not reported in the calendar years 1995 though 1998. To date, the defendants have paid the IRS more than $100,000 toward their federal tax liabilities.

This matter was investigated by Internal Revenue Service - Criminal Investigation, along with the Federal Bureau of Investigation and the Statewide Organized Crime Investigation Task Force of the Connecticut State Police, and the Branford and New Haven Police Departments. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov