Hudson Valley Attorney Jailed For Tax Evasion

A Hudson Valley attorney is heading to prison for tax evasion and more.

On Wednesday, 62-year-old Francis J. O'Reilly, a Putnam County attorney, was sentenced in White Plains federal court to 18 months in prison for committing tax evasion and failing to pay over payroll taxes for the 2015 tax year.

This act was part of a long-running tax scheme that cost the U.S Treasury over $800,000 including interest and penalties. O'Reilly had pleaded guilty to the allegations against him.

“Francis O’Reilly, an attorney for three decades, knew his obligations under the law to pay over payroll taxes and to report and pay income tax when due.  Having admitted his crimes, O’Reilly will now pay the consequences in jail time.," Acting U.S. Attorney Audrey Strauss said.

O'Reilly practiced law in New York State and at times was a self-employed attorney who maintained a practice in Putnam County, that specialized in, bankruptcy, foreclosure defense, and criminal defense.

Between 2013 and 2017, O'Reilly withdrew a total of approximately $481,673 in untaxed funds from his attorney trust account for personal use, none of which he reported on his tax returns for those years.

In total, during the tax years 2007 through 2018, O’Reilly evaded approximately $566,027 in personal federal income taxes, including interest and penalties, according to the allegations to which he pleaded guilty, court filings, and statements made in public court proceedings.

In addition to the prison term, Judge Karas ordered O'Reilly of Danbury, Connecticut, to serve two years of supervised release, and to pay restitution to the IRS in the amount of $801,969, which represents O'Reilly's unpaid tax liabilities, as well as certain penalties and interest, relating to his personal income taxes for the calendar years 2007 through 2018, payroll taxes for the calendar years 1997 through 2018, and Federal Unemployment Tax Act (FUTA) taxes for the calendar years 1998 through 2017.