DURHAM — A town man faces up to three years in prison after pleading guilty to filing false tax returns related to his West Haven taxi company.
William Scalzi, 61, of Durham, pleaded guilty to one count of subscribing a false tax return and agreed to pay $297,319 in restitution to the Internal Revenue Service.
Scalzi, owner of the Transportation General, Inc. in West Haven, understated his taxable income by using his company's credit cards to pay for “numerous personal expenses” over three years, according to court documents.
Transportation General, Inc., working as M7, offers taxi cab services in the New Haven, Meriden, Wallingford, Bridgeport, Trumbull, Branford, and Hamden areas.
From 2007 through 2010, personal expenses were deducted as business expenses on the company’s tax returns and not included as income on his personal tax returns.
The case is being investigated by the IRS and prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
On Monday, Scalzi waived his right to be indicted and pleaded guilty before U.S. District Judge Victor A. Bolden in Bridgeport. A sentencing date has not been scheduled. He faces up to three years in prison.
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