On Monday, September 11, 2017, it was announced that an East Hartford attorney had waived his right to be indicted and pleaded guilty to a single count of tax evasion. 67-year-old Donald J. McCarthy of East Hartford, Connecticut pleaded guilty before United States District Judge Stefan R. Underhill. Court documents and statements made in court reveal that McCarthy filed federal personal income tax returns for tax years 1997 through 1999, 2001, 2003 and 2008 through 2011.
However, he failed to pay the outstanding balance due or failed to pay interest and penalties. For the tax years 2012 through 2014, the attorney did not file personal tax income returns at all. He also failed to pay taxes that were due and owed during that period of time. An investigation showed that McCarthy tried to evade the payment by depositing payroll checks into his personal bank account. Then, he withdrew a substantial amount of the money in cash and bank checks.
McCarthy learned of the criminal investigation in June of 2015. At that time, McCarthy owed $1,437,037 in back taxes, interest and penalties to the Internal Revenue Service. The defendant is scheduled to be sentenced on December 4, 2017. He faces a maximum sentence of five years. McCarthy had agreed to cooperate with the Internal Revenue Service. He has been released on a $50,000 bond and remains free pending sentencing.