Brookfield Accountant Pleads Guilty To Cooking Books At Danbury Biz

DANBURY, CT — A Brookfield accountant has pleaded guilty to cooking the books for a Danbury grocery store.

Lizbel Sanchez, also known as Lizbel Diaz, 47, waived her right to be indicted and pleaded guilty on Thursday in Bridgeport federal court to a federal tax offense, according to a news release from the Office of the United States Attorney for the District of Connecticut.

Sanchez, a minority owner of Danbury Food Corporation, which operates a C-Town grocery store in Danbury, was responsible for DFC’s accounting and financial records, according to court documents and statements made in court. She was also in charge of collecting and paying over certain federal taxes from DFC's employees, namely federal income taxes and Federal Insurance Contribution Act taxes, which include Medicare and social security taxes. She was also responsible for ensuring that DFC paid its own share of FICA and its Federal Unemployment Tax.

Sanchez and DFC paid several employees in cash and failed to collect, account for and pay over the federal income taxes and FICA taxes associated with the cash wages, according to the statement from the U.S. Attorney's Office. Sanchez also failed to account for and pay over DFC’s share of FICA taxes and its FUTA obligation based on the taxable wages of those employees that DFC paid in cash. As a result of Sanchez's actions, the IRS came up $408,121.85 short for the 2016 tax year.

Sanchez pleaded guilty to one count of willful failure to collect or pay over taxes, which carries a maximum term of imprisonment of five years. She has been released on bond pending sentencing on July 7 in Hartford.

Sanchez has paid $408,121.85 in restitution to the IRS, according to the Feds. She also has acknowledged similar conduct for DFC in 2017 and 2018, and for other businesses in which Sanchez had an interest in 2016, 2017 and 2018. Additional tax losses will be addressed civilly by the IRS.