Norwalk man pleads guilty to tax evasion offense


Date: March 15, 2021


Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that Michael C. Monroe of Norwalk, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill to one count of tax evasion.

Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.

According to court documents and statements made in court, Monroe operates a construction business known as Monroe Construction. From 2008 through 2013, Monroe owed substantial unpaid income taxes and penalties to the IRS. In 2014, the IRS levied the business bank account used by Monroe as the operating account for his construction company. Monroe subsequently closed his business bank account and, between approximately November 2014 and November 2017, evaded payment to the IRS of his preexisting tax obligations 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. In addition to evading payment to the IRS of more than $107,000, he understated the federal income taxes he owed in 2014 and 2015 by approximately $34,000.

Monroe has agreed to pay total back taxes of $141,041.17, plus interest and penalties.

Judge Underhill scheduled sentencing for June 15, 2021, at which time Monroe faces a maximum term of imprisonment of five years. Monroe is released pending sentencing.

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.