Norwalk Man Pleads Guilty In $141,000 Tax Evasion Case: Feds

NORWALK, CT — A 48-year-old Norwalk man waived his right to be indicted and pleaded guilty Monday one count of tax evasion in which he owes the Internal Revenue Service more than $140,000, according to Acting United States Attorney Leonard C. Boyle.

Michael C. Monroe pleaded guilty via videoconference before U.S. District Stefan R. Underhill. In addition to the U.S. Attorney's Office, Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, also was involved in investigating the case.

According to court documents and statements, Monroe operates a construction business known as Monroe Construction, and from 2008 through 2013, he "owed substantial unpaid income taxes and penalties to the IRS."

In 2014, the IRS levied Monroe's business bank account, but he subsequently closed his business bank account and, between approximately November 2014 and November 2017, he "evaded payment to the IRS of his preexisting tax obligations."

Prosecutors said Monroe avoided payments by using a check cashing service to cash approximately $1.5 million in customer checks paid to his business.

For the 2014 and 2015 tax years, Monroe failed to report to the IRS a total of more than $700,000 that his business generated in gross revenues, according to Boyle. In addition to evading payment to the IRS of more than $107,000, Monroe understated the federal income taxes he owed in 2014 and 2015 by approximately $34,000.

Monroe is scheduled to be sentenced by Judge Underhill on June 15, and he has agreed to pay total back taxes of $141,041.17, plus interest and penalties.

At his sentencing, Monroe, who is free as he awaits sentencing, faces a possible maximum of five years in prison.

This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.