Uncasville Business Owner Sentenced For Tax Evasion: Feds

UNCASVILLE, CT — An Uncasville business owner has been sentenced to a year and a day in prison for tax evasion according to a statement from Leonard C Boyle, United States Attorney for the District of Connecticut. Kathryn Pocock, 59, will also serve one year of supervised release.

According to prosecutors, Pocock operated Sunshine Cleaners, LLC, a home cleaning business., since 1991. Between 2015 and 2019, Pocock withdrew about $855,000 from the business and failed to report this on the relevant tax forms for the business and on her federal income tax returns.

The investigation found that Pocock regularly cashed numerous client checks that had been paid to her business, deposited some checks into her personal bank account, and paid her employees “under the table,” according to prosecutors.

Pocock wrote checks payable to cash from her personal and business bank accounts, and paid employees in cash without collecting and paying over employment tax to the IRS or sales and use taxes owed to the state.

The investigation also found that Pocock provided her tax preparer with false spreadsheets and supporting documentation that significantly understated her income and employee-related expenses, according to prosecutors.

Pocock’s fraud resulted in a total tax loss of$213,965, including unreported taxes of $180,451 owed to the IRS and$33,514 owed to the state.

A judge ordered Pocock to pay full restitution.

Pocock pleaded guilty to the crime Sept. 15.