New Canaan man pleads guilty to tax evasion
Published 12:32 pm, Wednesday, February 29, 2012
A 70-year-old New Canaan man could spend up to 10 years in federal prison after pleading guilty Tuesday to running a tax evasion scheme that lasted more than a decade.
Authorities say Sherwood Schaub, an executive at various headhunting firms, bilked the IRS out of more than $1.3 million from 1994 to 2006 by repeatedly changing the names of the firms he was running, and by transferring money to his wife's bank account.
Schaub, also known as Andy Sherwood, pleaded guilty to two counts of tax evasion Tuesday in New Haven federal court. He faces up to five years impsionment and a fine of up to $100,000 for each count.
Federal authorities say between 1994 and 2006, Schaub's business entities -- including Goodrich & Sherwood Company, Goodrich & Sherwood Associates, Inc., Whittenwood Associates Inc. and GSA International, Inc. -- repeatedly failed to pay federal taxes that had been withheld from employees' paychecks.
The IRS assessed Schaub -- currently the chairman of Goodrich Capital and managing director of its affiliated executive recruiting firm Goodrich & Sherwood -- penalties for failing to pay those taxes, but Schaub failed to pay the penalties as well.
Schaub, a graduate of Nichols College who later studied at Harvard, co-founded the recruiting firm in 1970 with George Goodrich. According to the profile on his company's website, Schaub has served as an advisor to two past U.S. Presidential Administrations (Ronald Reagan and George H. W. Bush) and has been recognized in numerous business publications.
Thomas Carson, a spokesman for U.S. Attorney David B. Fein, said Schaub "willfully attempted to avoid paying taxes by causing his business entitites to operate under various names, and by causing his income to be paid in his wife's name rather than his own in the form of checks and wire transfers to her bank account."
Carson said in 2005, Schaub also received $164,100 in taxable income deposited into his wife's bank account, but failed to pay taxes on the income and failed to file an income tax return that year.
As part of a plea agreement, Schaub has agreed to cooperate with the IRS and to pay all back taxes, penalties and interest, Carson said.