Former Madison Resident Sentenced In Tax Evasion Scheme

STRATFORD, CT — A woman was sentenced this week for running a tax-evasion scheme out of a Stratford business, according to a news release from the U.S. Attorney's Office for the District of Connecticut. Theresa Foreman, 58, of St. Cloud, Florida — formerly of Madison —received a year and a day of prison time and three years supervised release, the news release said.

According to court documents and statements made in court, Foreman operated Equinox Home Care LLC, a home health care staffing agency based in Stratford. Beginning as early as 2012, Foreman took money out of the company by depositing or cashing checks written to people who did not actually work for Equinox Home Care, according to the news release. Between May 2012 and December 2013, about $413,000 in payroll checks to these "ghost employees" were deposited into accounts controlled by Foreman's brother. During the same period, about $465,000 was withdrawn from the accounts. Foreman also had employees cash company checks and return the funds to her, and she cashed mileage reimbursement checks made out to other people and used the funds for her own benefit.

The investigation also revealed that between August 2014 and November 2015, Foreman made 101 cash deposits totaling $580,580 to a bank account in a family member's name, the news release said.

Foreman did not report the amounts she received through the scheme on her federal tax returns for 2012, 2013 and 2014, according to the news release. Foreman also owed taxes for the 2010 and 2011 tax years and, on a statement submitted to the Internal Revenue Service in March 2013, provided false information about her income and assets. On the statement, Foreman falsely indicated she had no monthly income. She also failed to declare ownership of a property in Saint Cloud, which she had purchased jointly with her brother in March 2012; failed to declare a bank account held in the name of her adult son, but which she controlled and used; and failed to declare recent purchases of a 2012 Chevrolet Corvette and a 2013 Cadillac Escalade.

Foreman's actions for the 2010 through 2014 tax years resulted in a loss of $641,941.46 to the IRS, the news release said. A judge ordered her to pay all back taxes, plus penalties and interest.

On March 4, 2019, Foreman pleaded guilty to one count of tax evasion.

Foreman, who was sentenced Monday and is released on a $10,000 bond, is required to report to prison Feb. 28.