East Lyme Fisherman Sentenced to Federal Prison for Tax Evasion

NEW HAVEN, CT – An East Lyme commercial fishing boat captain was sentenced Thursday to three months of imprisonment, followed by three years of supervised release, for tax evasion.

Peter Torres, 48, failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income from 2006 to 2011, according to a release.

Torres pleaded guilty to attempted tax evasion on Nov. 30, 2015. He admitted that he was issued Forms 1099 that documented the income paid to him for each tax year, but did not file his tax returns and report the income and tax due to the IRS.

In his plea agreement, he agreed that the tax loss for this period is between $250,000 and $550,000.

Torres also admitted to negotiating checks he received as payment for his fishing services in an effort to conceal his income from the IRS by depositing them in the bank. He would then withdraw cash or obtain bank checks in varying amounts under $10,000 on the same day.

Torres will enter into a payment plan with the IRS to repay the back taxes, as well as applicable penalties and interest.

The case was investigated by the Internal Revenue Service – Criminal Investigation Division.

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