Cheshire Woman Sentenced to Prison for Fraud and Tax Offenses Stemming from Nearly $1 Million Embezzlement Scheme

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ERIN SULLIVAN, 53, of Cheshire, was sentenced yesterday by U.S. District Judge Kari A. Dooley in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for fraud and tax offenses stemming from an embezzlement scheme.

According to court documents and statements made in court, Sullivan was employed as the office manager for a family-owned construction business, identified in court documents in “Company A,” based in Orange.  Beginning at least as early as 2016, Sullivan made false entries into Company A’s payroll and accounting system that caused the system to generate hundreds of fraudulent checks payable to her or to “Petty Cash.”  Almost immediately after she generated a fraudulent check, Sullivan changed the reference in the payroll and accounting system to show that it had been issued to a different payee.  Sullivan sometimes generated checks in the name of Company A’s owner, forged the signature of Company A’s owner on the checks, and either cashed the checks or deposited them into her bank account.  She also altered the payroll and accounting system in other ways, which resulted in her receiving additional pay to which she was not entitled.  Through this scheme, Sullivan embezzled $955,960.71 from Company A.

In addition, Sullivan failed to pay $233,738 in federal income taxes on her embezzled income for the 2016 through 2021 tax years.

Judge Dooley ordered Sullivan to pay restitution of more than $1.17 million.  Sullivan has paid approximately $640,000 in restitution to date.

On October 30, 2023, Sullivan pleaded guilty to one count of wire fraud and one count of tax evasion.

Sullivan, who is released on a $100,000 bond, is required to report to prison on April 8.

This investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Orange Police Department.  The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.