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Feds: Former CT woman used ‘ghost employees’ in $712,446 tax fraud

March 5, 2019 GMT

A former Madison woman, who operated a Stratford healthcare staffing agency, pleaded guilty to a tax fraud scheme that resulted in a loss of $712,446 to the IRS.

According to court documents, beginning as early as 2012, Theresa Foreman took money out of the company by depositing or cashing, and causing to be deposited or cashed, checks written to individuals who did not actually work for Equinox Home Care.

Between May 2012 and December 2013, approximately $413,000 in payroll checks to these “ghost employees” were deposited into accounts controlled by Foreman’s brother. During the same period, approximately $465,000 was withdrawn from the accounts in cash, cash back from deposits, or checks payable to Foreman.


Foreman also had employees cash company checks and return the funds to her, and she cashed or caused to be cashed mileage reimbursement checks made out to other individuals and used the funds for her own benefit.

The investigation also revealed that between August 2014 and November 2015, Foreman made or caused to be made 101 cash deposits totaling $580,580 to a bank account in a family member’s name.

John H. Durham, U.S. Attorney for Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced Monday that Foreman, of St. Cloud, Florida, waived her right to be indicted and pleaded guilty before U.S. District Judge Victor A. Bolden in Bridgeport to one count of tax evasion.

Foreman failed to report the amounts that she received through this scheme on her federal tax returns for 2012, 2013, and 2014.

Foreman also owed tax for the 2010 and 2011 tax years and, on a statement submitted to the IRS, provided false information about her income and assets.

In pleading guilty, Foreman agreed that her conduct for the 2010 through 2014 tax years has resulted in a loss of $712,445.71 to the Internal Revenue Service.

When she is sentenced, Foreman faces a maximum term of imprisonment of five years, a fine and an order of restitution. A sentencing date is not scheduled.

Foreman is a released on a $10,000 bond pending sentencing.