Connecticut Accountant Pleads Guilty to $1.3M Tax Evasion Scheme

UPDATE: A Connecticut accountant has just pleaded guilty to tax evasion, admitting to failing to report a staggering $1.3 million in income over a seven-year period. Edward J. Sodlosky, aged 71, from Middlebury, waived his right to indictment and entered his plea in federal court in New Haven on Thursday, according to the U.S. Attorney’s Office for the District of Connecticut.

This urgent case highlights a significant breach of trust by a certified public accountant. From 2016 to 2022, Sodlosky, who operated the firm EJS-CPA in Naugatuck, prepared and filed joint income tax returns with the IRS for himself and his spouse. However, federal officials revealed that he engaged in deceptive practices to hide his substantial income.

Sodlosky cashed over 2,000 client payment checks, diverting a “substantial amount” of business receipts from EJS-CPA’s bank accounts and failing to report them on his tax returns. According to the U.S. Attorney’s Office, he utilized a complex network of business, personal, and nominee accounts to maintain control over 15 different bank accounts, which he used to conceal his earnings.

The fallout from his actions has resulted in a tax loss of $422,720 to the government, emphasizing the serious nature of this crime. Currently free on a $50,000 bond, Sodlosky is set for sentencing by U.S. District Judge Sarala V. Nagala in Hartford on April 15, 2026. He faces a maximum prison sentence of five years and will be required to pay restitution to the IRS.

This case serves as a stark reminder of the consequences of financial misconduct, especially from those in positions of trust. As the situation develops, the implications of Sodlosky’s guilty plea will resonate throughout the accounting industry and beyond, prompting discussions on accountability and ethical practices.

Stay tuned as more updates unfold on this significant legal matter.