A former Connecticut resident, Danny D. Beeman, 66, now a resident of Beverly Hills, Florida, pleaded guilty on Wednesday to tax evasion.
On Thursday Vanessa Roberts Avery, US Attorney for the District of Connecticut, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, announced that Mr. Beeman had waived his right to be indicted.
According to court documents and statements made in court, Beeman claimed to be the originator and developer of computer software technology capable of compressing electronically-stored data.
In 2012, Beeman and other individuals formed a Connecticut company, identified in court documents as “Company-A,” to allow Beeman to develop the compression software. From 2013 to 2017, Company-A paid Beeman approximately $316,000 to develop the software. During this time, Beeman submitted fake invoices to Company-A seeking reimbursement for purchases of computer-related equipment that he never purchased. Beeman obtained approximately $2 million from Company-A through these fake invoices.
In total, from 2013 to 2017, Beeman received approximately $2.3 million from Company-A, all of which was taxable income. Beeman also had long-term capital gains income of approximately $1.5 million resulting from the sale of shares in Company-A.
However, Beeman never filed tax returns for any of those years, resulting in a tax loss to the Internal Revenue Service of approximately $1,054,032.
Beeman faces a maximum term of imprisonment of 5 years. A sentencing date has not been scheduled.
Beeman is released pending sentencing.
This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.