Owner of Defunct Oil Company Admits Filing False Tax Returns

David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD A. STEVENS, 60, of Middlebury, pled guilty today before Senior United States District Judge Alfred V. Covello in Hartford to one count of willfully filing a false U.S. tax return.

According to court documents and statements made in court, STEVENS owned F&S Oil Company, Inc. (“F&S Oil”), a now-defunct business that was based in Waterbury. In pleading guilty, STEVEN admitted that, during the 2006 and 2007 tax years, he charged personal expenditures that were unrelated to F&S Oil business on the company’s credit cards, including meals, travel, golf outings, and equipment. For the 2006 tax year, STEVENS charged $113,733 in personal expenses to F&S Oil and, in 2007, he charged $115,667 in personal expenses to the company.

STEVENS failed to report any of these expenditures on his personal federal tax returns for the 2006 and 2007 tax years, underpaying his federal taxes by a total of $79,186 for the two years.

Judge Covello has scheduled sentencing for November 3, 2010, at which time STEVENS faces a maximum term of imprisonment of three years and a fine of up to $250,000. STEVENS also will be required to pay back taxes, penalties, and interest to the Internal Revenue Service.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Senior Litigation Counsel Christopher W. Schmeisser.