United States Attorney's Office District of Connecticut
Press Release

HAMDEN TAX PREPARER SENTENCED TO FOUR-YEAR FEDERAL PRISON TERM

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that JOHN K. CANNON, age 63, of 36 Kelly Road, Hamden, Connecticut, was sentenced today by United States District Judge Mark R. Kravitz in New Haven to a 48-month term of imprisonment, followed by one year of supervised release, for assisting clients of his tax preparation business with filing materially false federal income tax returns, and for failing to file his own federal income tax return for the 2001 calendar year.

On June 28, 2004, CANNON pleaded guilty to Counts 16 and 48 of a 48-count Indictment. Judge Kravitz sentenced CANNON to a 36-month term of imprisonment on Count 16, and a consecutive 12-month term on Count 48. Noting that this was CANNON’s third federal conviction, Judge Kravitz stated to CANNON “your past terms of incarceration have had absolutely no impact on deterring you from a life of crime.”

According to documents filed with the Court and to statements made in court, CANNON, who had been self-employed as a tax preparer for approximately 40 years, admitted that between 1999 and 2001, he willfully prepared hundreds of federal income tax returns in which he falsely represented that his clients were lawfully entitled to claim itemized deductions, business expenses, rental expenses and other deductions to which they were not entitled. CANNON also acknowledged that he intentionally sought to interfere with the Internal Revenue Service’s ability to investigate and audit his preparation of those returns, and that, as a result of his actions, he deprived the IRS of nearly $1 million in tax revenue. CANNON further admitted that he willfully failed to file his own income tax return for the calendar year 2001, as required by law, despite earning more than $250,000 from his tax preparation business in that year.

According to statements made by the Government at today’s proceeding, CANNON owes the IRS $188,728 in back taxes for the 2000-2002 tax years. Judge Kravitz ordered CANNON to pay these taxes, along with any penalties and interest.

In addition to the sentenced imposed today, the Court also accepted a permanent injunction against CANNON that will bar him from engaging in the business of preparing income tax returns or from further acting as an income tax preparer in the future.

“This individual is a repeat tax offender, who cheated the Government out of an extraordinary amount of money,” U.S. Attorney O’Connor stated. “Our tax system is one of the foundations of our society, and this Office will vigorously investigate and prosecute those who repeatedly violate it.”

This case was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Supervisory Assistant United States Attorney Ronald S. Apter.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov