Winsted Roofer Sentenced to 1 Year for Cash "Structuring"
David B. Fein, United States Attorney for the District of Connecticut, announced that Karl Gagnon, 44, of Winsted, was sentenced today by United States District Judge Christopher F. Droney in Hartford to 12 months and one day of imprisonment, followed by two years of supervised release, for structuring cash transactions for the purpose of evading federal reporting requirements. Mr. Gagnon pleaded guilty to the offense on July 22.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the funds are derived from legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, Mr. Gagnon was a self-employed general contractor, doing business as Karl Gagnon Construction, specializing in residential roofing. Between September 6 and October 6, 2006, Mr. Gagnon deposited approximately $277,306 at various branches of Northwest Community Bank and Webster Bank by making 29 separate cash deposits in amounts equal to or less than $10,000.
The investigation of the matter revealed that Mr. Gagnon had not filed federal income tax returns from 1999 to 2006.
This case was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorneys Paul H. McConnell and Christopher M. Mattei.
David B. Fein, United States Attorney for the District of Connecticut, announced that Karl Gagnon, 44, of Winsted, was sentenced today by United States District Judge Christopher F. Droney in Hartford to 12 months and one day of imprisonment, followed by two years of supervised release, for structuring cash transactions for the purpose of evading federal reporting requirements. Mr. Gagnon pleaded guilty to the offense on July 22.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the funds are derived from legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, Mr. Gagnon was a self-employed general contractor, doing business as Karl Gagnon Construction, specializing in residential roofing. Between September 6 and October 6, 2006, Mr. Gagnon deposited approximately $277,306 at various branches of Northwest Community Bank and Webster Bank by making 29 separate cash deposits in amounts equal to or less than $10,000.
The investigation of the matter revealed that Mr. Gagnon had not filed federal income tax returns from 1999 to 2006.
This case was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorneys Paul H. McConnell and Christopher M. Mattei.
