NORWALK, Conn. — A 64-year-old Norwalk man could be facing up to 15 years in federal prison after pleading guilty Monday to tax evasion and embezzling nearly $825,000 from two Norwalk companies where he worked, prosecutors said
Mark W. Errico pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to interstate transportation of money obtained by fraud and tax evasion, U.S. Attorney for Connecticut Deirdre M. Daly.
According to court documents and statements made in court, for 20 years, Errico worked for the owner of two companies in Norwalk, handling the companies’ finances, including payroll, bank accounts, accounts payable and accounts receivable.
From February 2011 to March 2014, Errico embezzled $823,476.22 from the two companies. He transferred the stolen funds from the companies’ accounts to pay his personal credit card debts, and also forged the signature of the companies’ owner on company checks and cashed them or made them payable to his own company and deposited them into his company’s business account.
For the 2011 through 2014 tax years, Errico attempted to evade paying federal taxes on $851,076.22 of unreported income, which resulted in a total tax loss of $265,326.
For tax year 2013, he filed a federal individual tax return for himself in which he stated his taxable income was $31,200. The tax return failed to report $536,434.50 in money he stole from the two Norwalk companies.
Sentencing is set for July 17. Errico also has agreed to pay $654,546.09 in restitution to the two companies, and he is obligated to pay $265,326 in back taxes, plus penalties and interest, which continue to accrue.
Errico was released on bond pending sentencing.