Vanessa Roberts Avery, US Attorney for the District of Connecticut, announced that Thomas Pacilio, 64, of Westport, was sentenced in Hartford Thursday to six months of imprisonment, followed by one year of supervised release, for a federal tax offense.
U.S. District Judge Sarala V. Nagala also ordered Pacilio to pay a $50,000 fine.
According to court documents and statements made in court, in 2011, Pacilio and his partner started Clapboard Hill Advisors LLC, a financial services business headquartered in Westport. In 2013, Pacilio created Alcamo Holding Corporation Inc. (“Alcamo”), an 1120S corporation, and transferred his Clapboard Hill Advisors partnership interest to Alcamo.
In 2014, Pacilio, through Alcamo, and his partner, through a separate 1120S corporation, sold Clapboard Hill Advisors to McGladrey Wealth Management LLC (“McGladrey”).
Under the sale agreement, McGladrey agreed to make a lump sum payment at closing. Thereafter, Pacilio was to become an employee of McGladrey for three years subject to a non-competition provision.
In addition to being paid a salary by McGladrey, if Pacilio remained an employee, Pacilio would receive a $350,000 payment on each anniversary of the sale for three years.
He would also receive a portion of McGladrey’s annual gross revenue of up to $150,000 for the first year, $350,000 for the second year, and $450,000 for the third year.
On January 5, 2023, Pacilio pleaded guilty to one count of filing a false tax return and admitted that, for the 2015 through 2018 tax years, he filed individual income tax returns that omitted installment payments related to the sale of Clapboard Hill Advisors to McGladrey.
In total, he omitted approximately $1,476,425 that should have been reported either as ordinary income or as capital gains, which resulted in a tax loss of $286,328 to the IRS.
Pacilio has paid the taxes he owed.
Pacilio who is released on a $350,000 bond, is required to report to prison on June 12.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.