Naugatuck-Based CPA Pleads Guilty To Tax Evasion: Feds

NAUGATUCK, CT — A local certified public accountant pleaded guilty Wednesday in federal court to tax evasion.

Edward J. Sodlosky, 71, a Middlebury resident, entered the plea in U.S. District Court in New Haven.

Sodlosky failed to report about $1,379,694 of income to the Internal Revenue Service, resulting in a tax loss to the government of $422,720, according to the U.S. Attorney’s office.

Sodlosky for years has owned and operated the business Edward J. Sodlosky, Certified Public Accountant in Naugatuck.

Between 2016 through 2022, Sodlosky prepared and filed annual joint income tax returns for himself and his spouse, along with annual partnership income tax returns for an entity named FinGLTD, which he owned with his spouse, prosecutors said.

According to the U.S. Attorney’s office, Sodlosky cashed more than 2,000 client payment checks to hide income generated by his accounting business.

As a result, “a substantial amount” of the accounting business’ receipts were diverted from the business’ bank accounts and not reported in tax returns, prosecutors said.

Sodlosky deposited funds from the cashed checks, as well as client payment checks to his accounting business, into a network of business, personal, and nominee accounts, according to the government. Prosecutors said he maintained, controlled, and used 15 different bank accounts to deposit business receipts and evade income taxes.

Sodlosky, who is free on a $50,000 bond, is scheduled to be sentenced on April 15. He faces a maximum of five years in prison. He will be required to make full restitution to the Internal Revenue Service, prosecutors said.