Shoreline business owner admits failure to pay taxes

 

Date: April 29, 2022

Contact: newsroom@ci.irs.gov

Leonard C Boyle, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that Christopher Jardine, of Guilford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to a federal tax offense stemming from his failure to pay business and personal taxes.

According to court documents and statements made in court, Jardine is a part owner of D&A Construction Management, Inc. ("D&A"), a Branford-based company in the construction business. Jardine was responsible for D&A's financial affairs, and for collecting and paying over certain federal taxes from D&A's employees, namely federal income taxes and Federal Insurance Contribution Act ("FICA") taxes, which include Medicare and social security taxes. He was also responsible for ensuring that D&A, as an employer, paid its own share of FICA taxes.

An investigation revealed that, although Jardine and D&A withheld employees' federal income and FICA taxes over multiple tax periods between 2016 and 2019 and reported those withholdings to the IRS, they failed to pay over the withheld amounts, totaling approximately $868,000. Jardine also represented to the IRS that D&A lacked the ability to pay, but he used millions of dollars in company funds to pay personal expenses, including purchases of a 52-foot cigarette boat, a Range Rover, high-end clothing, and auto parts, and to make payments on behalf of Straight Jacket USA, LLC, a Guilford business controlled by Jardine.

Jardine pleaded guilty to one count of willful failure to pay over withholding taxes. In pleading guilty, Jardine admitted that he evaded payment of the withheld employee taxes, as well as D&A's share of FICA taxes, for multiple quarters during the 2016 through 2019 tax years, and he also acknowledged that he evaded the payment of personal income tax liabilities for multiple tax years between 2007 and 2015. Jardine has agreed to pay approximately $2,070,000 in restitution to the IRS, an amount that includes interest and penalties.

Judge Dooley scheduled sentencing for July 28, at which time Jardine faces a maximum term of imprisonment of five years.

To date, Jardine has paid approximately $1,197,600 of his restitution obligation.

Jardine is released on a $50,000 bond pending sentencing.

This investigation has been conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.