Falmouth Man Pleads Guilty to Tax Evasion

Press Release

Jeffrey Riddle lied about ability to pay while hiding income, purchasing an island home

PORTLAND, Maine: A Falmouth man pleaded guilty today in U.S. District Court in Portland to tax evasion.

According to court records, Jeffrey Riddle, 58, filed federal income tax returns for 2006 through 2014, reporting that he owed substantial federal tax. Despite reporting that he owed taxes, Riddle did not pay.

The IRS began trying to collect Riddle's back taxes in 2010, filing notices of federal tax liens on property and levies on his bank account. In 2015, while still owing substantial back taxes, Riddle created a new business, Silica Marketing LLC, and entered into a lucrative consulting agreement with a large tire retailer. Riddle put the ownership of the company under his then-wife's name despite the company's sole revenue coming from his consulting work and using the proceeds to pay personal expenses. When meeting with the IRS revenue officer assigned to collect his back taxes, Riddle stated that he earned $6,000 a month in wages from Silica and provided the IRS with a falsified letter showing he would be paid a $3,000 bi-monthly salary. He failed to disclose that he had signed a consulting agreement as Silica's president and CEO and that Silica was receiving substantial income from that contract. Riddle also failed to disclose that money paid to Silica was being used to pay his personal expenses. Among the expenses paid for with Silica funds was the down payment on a home on Great Diamond Island in 2016, purchased in Silica's name.

In 2017, Riddle created a new company to replace Silica, continuing to consult with the same tire retailer. In 2020, Riddle sold part of the company for $400,000, and $250,000 was placed in escrow for the purpose of satisfying Riddle's tax debt. None of the funds were paid to the IRS. On the day the partial sale of his company closed, Riddle purchased a Corvette, titling it in his company's name.

Riddle faces up to five years imprisonment and a fine up to $250,000 to be followed by up to three years of supervised release.

IRS Criminal Investigation investigated the case.

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Updated December 16, 2024