Fisherman Pleads Guilty to Federal Tax Evasion

East Lyme resident Peter Torres, 47, waived his right to indictment and pleaded guilty to one count of attempted tax evasion before a judge Monday, Nov. 30.

From 2006 to 2011, Torres failed to file tax returns with the IRS and report approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain.

In pleading guilty, Torres admitted that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS, according to a prepared statement from Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England.

In his plea agreement, Torres agreed that the tax loss for this period is between $250,000 and $550,000. Sentencing is scheduled for February 22, 2016. Torres faces a maximum term of imprisonment of five years and a fine of up to $250,000.

He also admitted that, in an effort to conceal his income from the IRS, he negotiated checks he received as payment for his fishing services by depositing them in the bank and, on the same day, withdrawing cash or obtaining bank checks in varying amounts under $10,000, Daly said.

As part of his guilty plea, Torres acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years and has agreed to enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.

(image via shutterstock)