Newtown Man Sentenced In Tax Evasion Case

By Andrew Gorosko

HARTFORD — A Newtown man who failed to pay more than $320,000 in federal income tax was sentenced this week in US District Court after having pleaded guilty in July to one count of filing a false federal tax return.

US District Judge Christopher F. Droney sentenced Richard J. Dunseith, 56, of 9 Silver City Road to two years of probation, the first eight months of which Dunseith must spend under house arrest, also known as home confinement.

Also, Judge Droney also ordered Dunseith to pay a $25,000 fine.

According to court documents and statements made in court, Dunseith failed to file an IRS Form 1040 for the 2004, 2005, and 2006 tax years.

Instead, Dunseith declared himself a trust, filed an IRS Form 1041 (US Income Tax Return for Estates and Trusts) for each year in which he disclosed his individual income, but reduced his taxable income to zero because he charged a fee to the trust equal to his total individual income, according to a statement from David B. Fein, the US Attorney for Connecticut.

Also, during the 2004 tax year, Dunseith withdrew approximately $161,000 from his Individual Retirement Account and failed to pay early withdrawal penalties on it, according to Fein.

 Through the tax scheme, Dunseith failed to pay approximately $320,271 in federal income taxes. To date, Dunseith has paid approximately $580,000 in back taxes, interest, and penalties to the government.

On July 6, Dunseith waived his right to indictment and pleaded guilty to the tax charge.

In a report to the court, Fein recommended that Dunseith should be sentenced to approximately 18 months in prison and should be fined approximately $40,000.

A memorandum to the court filed on behalf of Dunseith states, “Dick Dunseith stands before this court a contrite and remorseful man... He now understands that one misguided period will forever blemish a lifetime as a devoted family man who has honorably served his country and parish and unfailingly given to others in need… Dick has experienced and continues to experience deep remorse, particularly for having caused great pain to his wife, children and family.”

In that document, Dunseith’s lawyer sought to have a period of home confinement imposed on his client instead of imprisonment.

Among many testimonial letters that were submitted to the court on behalf of Dunseith, Monsignor Robert Weiss, the pastor of St Rose of Lima Church, wrote, in part, “Richard is a very moral and ethical man. He is highly regarded by this parish community. In spite of this present situation, he is still held in high regard by those who know him.”

 “I know through my conversations with him that he deeply regrets his actions and the consequences of his actions, especially the effect it is having on his family,” Monsignor Weiss added.

The tax case was handled by the IRS’s criminal investigations unit. The case was prosecuted by Assistant US Attorney Rahul Kale.