United States Attorney's Office District of Connecticut
Press Release

NORTH BRANFORD MAN SENTENCED FOR FEDERAL TAX OFFENSE

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that RUSSELL MAHLER, II, a 43 year old resident of North Branford, was sentenced on May 30, 2003, for violating federal tax laws. In a proceeding before the United States District Judge Janet Bond Arterton in New Haven, MAHLER was sentenced to a term of one year and one day in prison, a $4,000 fine, and a three year term of supervised release. MAHLER will also be responsible for payment of all back taxes along with penalties and interest. As a condition of supervised release, he was ordered to cooperate with the Internal Revenue Service and file all necessary tax returns or amended returns to facilitate payment of back taxes.

Previously, on March 11, 2003, MAHLER pleaded guilty to conspiring to impede the functions of the Internal Revenue Service. As was revealed in court proceedings, MAHLER, along with Russell Mahler, Sr., who also pleaded guilty to the same charges in March and is awaiting sentencing, operated a chain of about six gasoline/convenience stores at various locations in Connecticut during 1994 through 2001. The MAHLER'S admitted to paying a substantial portion of many of their employee's wages in cash and failing to pay over to the Internal Revenue Service the payroll taxes that would have been due on those wages. The tax loss to the Government from this scheme totaled about $247,000. RUSSELL MAHLER, II also acknowledged evading about $103,000 in his personal income taxes between 1994 and 1997.

"This case is an example of the commitment of the United States Attorney's Office to work along with the Internal Revenue Service to assure compliance with our tax laws," stated U.S. Attorney O'Connor. "Our office will vigorously enforce these laws to insure that tax obligations are fairly shared by all taxpayers."

This case was investigated by Special Agents of the Internal Revenue Service and was prosecuted by Assistant United States Attorney Peter A. Clark.

CONTACT:

U.S. ATTORNEY'S OFFICE
Delcie Thibault
Public Information Office
(203)821-3722 Office
(203)627-1082 Cell