Man pleads guilty to tax evasion

Feds say Southport resident skimmed from wealthy benefactor

A 72-year-old Southport man has pled guilty to not paying taxes on money provided by a benefactor.

US-ATTYAccording to Deirdre M. Daly, U.S. Attorney for the District of Connecticut, a wealthy friend paid some of Orval Furlong’s debts and financed tuition for Furlong’s children.

During the last years of the benefactor’s life, Furlong hired home health aides to care for the benefactor.  During this time, the benefactor provided Furlong with a stipend of approximately $8,000 to $10,000 per month, according to Daly’s office. The benefactor also employed the services of an attorney who acted as the benefactor’s power of attorney and oversaw the benefactor’s finances. Furlong provided the attorney with a detailed itemization of the hours worked by the home health aides, the hourly rates for their services, and the total funds needed to pay them for the services provided.  The attorney then issued Furlong checks from one of the benefactor’s bank accounts to pay the health aides.

From at least 2009 to 2011, Daly said, Furlong routinely inflated the true hours worked by the home health aides, as well as the applicable hourly rate. Furlong then paid the home health aides in cash or by check in an amount significantly lower than he had represented to the attorney. Furlong kept the difference and used the funds for his personal expenditures.

Through this scheme, Daly said, Furlong failed to report more than $500,000 in income on his 2009 through 2011 federal tax returns.

Furlong pleaded guilty Monday, Feb. 22, in New Haven federal court to one count of tax evasion.

When sentenced June 1, Furlong faces a maximum term of imprisonment of five years and a fine of up to $250,000. He also has agreed to pay $105,693 in back taxes, plus applicable interest and penalties.

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