A Falmouth man was sentenced to pay $590,912 in restitution to the IRS on Tuesday after he evaded taxes and used company funds to purchase an island home.
Jeffrey Riddle, 59, of Falmouth, pleaded guilty to tax evasion in December 2024 and was sentenced to three years of probation in addition to the restitution he was required to pay.
On his tax returns from 2006 through 2014, he reported that he owed a substantial amount of taxes but failed to pay what he owed.
In 2010, the IRS began its attempts to collect from Riddle, placing federal tax liens on his property and levies on his bank account.
In 2015, Riddle created a new business, Silica Marketing LLC, and began working as a marketing consultant for a tire company.
Riddle created the company under the name of his then-wife, though 100% of its revenue came from his work.
He also used the company to pay for his personal expenses.
During a meeting with the IRS agent assigned to collect his owed taxes, he claimed that he earned $6,000 per month from his work for the company and provided falsified documents to support that claim. He failed to disclose that he had made a consulting agreement while acting as the company’s CEO and that he was using the company’s revenue for his personal expenses.
He used company funds to make a down payment on a house on Great Diamond Island in 2016, which was purchased in the company’s name.
