Connecticut insurance salesman sentenced to prison for tax fraud
Despite earning millions in commissions, prosecutors said Terry DiMartino didn't file accurate tax returns or pay taxes owed.
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An insurance salesman from Newington, Connecticut, has been sentenced to 70 months in prison for tax fraud.
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The salesman, Terry DiMartino, was convicted after a jury trial in March 2016 of one count of corruptly interfering with the due administration of the internal revenue laws, two counts of filing false tax returns, and five counts of willfully failing to file tax returns.
Worked for numerous insurance companies
DiMartino was an insurance salesman for numerous insurance companies located in Connecticut and elsewhere. Despite earning millions of dollars in insurance commissions over the last decade, DiMartino did not file accurate tax returns or pay the taxes owed, prosecutors said.
According to the evidence presented at trial, DiMartino attempted to obstruct the Internal Revenue Service by mailing false documents to the IRS, including three false tax returns for the 2007 tax year, one of which requested a fraudulent $14 million refund. He sent false and threatening correspondence to the IRS in an attempt to defeat the IRS’s assessment, collection, and investigative efforts.
Threatening correspondence, hid assets
DiMartino submitted false and threatening correspondence to insurance companies that sought to cooperate with the IRS collection activities, according to the evidence.
Additionally, according to the evidence presented at trial, DiMartino also set up nominee entities that he used to divert his insurance commissions. He used the nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities.
The government asserted that DiMartino has not filed an accurate individual income tax return since the 1996 tax year.
Restitution of $658,547.62 owed to IRS
In addition to the term of imprisonment, U.S. District Court Judge Alvin W. Thompson ordered DiMartino to serve one year of supervised release and to pay $658,547.62 in restitution to the IRS.
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Steven A. Meyerowitz, Esq., (smeyerowitz@meyerowitzcommunications.com) is the director of FC&S Legal, the editor-in-chief of the Insurance Coverage Law Report, and the founder and president of Meyerowitz Communications Inc.