A Falmouth resident, Jeffrey Riddle, has pleaded guilty to tax evasion in the U.S. District Court in Portland. According to court records, Riddle, 58, filed federal income tax returns from 2006 through 2014, indicating that he owed significant federal taxes but failed to make payments.
The IRS began its efforts to collect Riddle's back taxes in 2010 by filing notices of federal tax liens on his property and levies on his bank account. Despite owing substantial back taxes, Riddle established a new business named Silica Marketing LLC in 2015 and entered into a consulting agreement with a large tire retailer. He listed the company under his then-wife’s name while using its revenue for personal expenses.
During interactions with an IRS revenue officer tasked with collecting his back taxes, Riddle claimed he earned $6,000 monthly from Silica and provided a falsified letter indicating a $3,000 bi-monthly salary. He did not disclose his role as president and CEO of Silica or that the company was receiving substantial income from the consulting contract. Additionally, funds paid to Silica were used for personal expenses such as the down payment on a home on Great Diamond Island in 2016.
In 2017, Riddle formed another company to replace Silica while continuing his consultancy with the same tire retailer. In 2020, he sold part of this new company for $400,000; however, none of the $250,000 placed in escrow intended for satisfying his tax debt was paid to the IRS. On the day of this partial sale closure, Riddle purchased a Corvette titled under his company's name.
Riddle now faces up to five years imprisonment and fines up to $250,000 along with up to three years of supervised release following incarceration.
The investigation was conducted by IRS Criminal Investigation.