Crime & Safety

New Canaan Man Pleads Guilty to Tax Evasion

Sherwood Schaub, 70, faces up to five years in prison for failing to pay federal taxes on over $1.4 million worth of income.

New Canaan resident Sherwood Schaub, 70, waived his right to indictment and pleaded guilty to two counts of tax evasion before a U.S. District judge in New Haven on Tuesday, according to a statement released by U.S. District Attorney David Fein.

According to court documents and statements made in court, business entities owned by Schaub, who is also known as "Andy Sherwood," repeatedly failed to pay federal taxes that had been withheld from employees’ paychecks between 1994 and 2006. The IRS charged Schaub penalites as a result, but he failed to pay those as well.

Schaub also avoided paying taxes by operating his businesses under various names and having his income paid in his wife's name instead of his own. Schaub failed to pay a total of $1,314,146.86 in taxes, interest and penalties during this time period.

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Documents also show that, in 2005, Schaub received $164,100 worth of taxable income that was deposited into his wife's checking account, which he failed to pay taxes on.

Schaub faces a maximum term of imprisonment of five years and a fine of up to $100,000 on each count. He will pay all back taxes, penalties and interest as a part of his plea agreement and is scheduled to be sentenced on May 22.

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