Department of Revenue Services (DRS) enforcement agents had a busy week with the arrest of two business owners and the third arrest of a Hartford for allegedly filing false state income tax returns.
Agents arrested Brian K. Belcher, 35, of Hartford today for a third time in relation to 63 counts of filing false income tax returns with the State of Connecticut. He was presented in Hartford Superior Court this afternoon. He is still in custody.
Belcher was first arrested in May of 2008 and charged with 43 counts of filing false state income tax returns, and one count each of larceny first degree, attempted larceny first degree, and computer crimes first degree. He had allegedly filed false electronic tax returns and attempted to steal tax refunds. All of these charges are felonies.
In October, Belcher was arrested on an additional 20 counts of filing false state income tax returns and one additional count each of larceny first degree, attempted larceny first degree, and computer crimes first degree as part of the continuing investigation. After posting bond on the additional charges, he failed to appear in court and was later arrested by the Hartford Police Department.
Today, DRS Agents charged Belcher with new counts of identity theft third degree and false statement to procure issuance of a credit card. While he was wanted for failure to appear in court, Belcher allegedly attempted to obtain a credit card in the name of one of his former tax refund victims.
As a result of the increasing charges against Belcher, the court raised his bail by an additional $75,000 over outstanding bail amounts previously set in relation to the case. Bail for the first arrest was set at $150,000 and bail for the second arrest was set at $100,000.
If convicted of the charges, Belcher could face imprisonment of up to five years and/or a fine of up to $5,000 for each count of filing a false return, 20 years and/or up to $20,000 for each count of larceny, and six years on the charges of identity theft and filing a false statement.
On Tuesday, December 8th, agents arrested a Watertown resident who has been operating two businesses in Litchfield County, and a Salem resident who owns a sandwich shop in Jewett City.
Jennifer Hallock, 37, of Watertown, was charged with 17 counts of failure to pay more than $35,000 in sales taxes for Me and E, LLC doing business under the trade name of “Sophie” restaurant on Straits Turnpike in Watertown. She was also charged with 11 counts of failure to pay more than $16,000 in sales taxes for Hallo, LLC doing business under the trade name of “3W and the Blue Bar” on West Street in Litchfield.
The Connecticut sales tax is a trust tax that is collected from the public and held in trust by the business until it is paid to the State of Connecticut. Hallock is alleged to have collected the $51,000 in tax money from the public and used it for other purposes.
Hallock was processed and released on a total of $53,000 in non-surety bonds. She will appear in the Harford Superior Court on January 11, 2010. All of the charges are class A misdemeanors. Conviction on any one count can bring imprisonment of up to one year or a $1,000 fine, or both.
In the third arrest of the week, Kyle Pflugbeil, 32, of Salem, was charged with one count of operating the Subway sandwich shop on North Main St. in Jewett City with a suspended sales tax permit. The permit had been suspended earlier in the year after he failed to resolve certain state tax liabilities. Pflugbeil was released on a written promise to appear in the Norwich Superior Court on January 13, 2010.
Operating with a suspended tax permit is a class C misdemeanor, punishable by imprisonment of not more than three months or a fine of up to $500.00, or both.
DRS Commissioner Richard D. Nicholson said that while the majority of taxpayers report and pay their state taxes according to the law, a strong enforcement arm is necessary for DRS to find and deal with those taxpayers who do not comply.
Commissioner Nicholson said, “DRS will aggressively pursue those who try to cheat the system.”
