After a long delay due to the pandemic, former Lewisboro Town Justice Marc Seedorf was sentenced Tuesday, Sept. 15, in White Plains federal court to six months in prison for tax evasion.
Mr. Seedorf pled guilty to tax evasion Dec. 6, 2019, before U.S. District Judge Cathy Seibel, who also imposed the sentence.
Mr. Seedorf was first scheduled to be sentenced March 24, which was postponed to May 12 after the onset of the pandemic. The date was then rescheduled twice more, first to July 2 and then to Sept. 15, when the sentencing finally was handed down.
Mr. Seedorf served as a Lewisboro Town Justice since 1997. His current term would have expired Dec. 31, 2021. However, it was cut short after he pled guilty to withholding U.S. individual income tax returns for the tax years 2005 through 2015 as well as concealing personal assets.
Mr. Seedorf was suspended without pay from his position as town justice after he pled guilty. During a Lewisboro Town Board meeting Jan. 21, former board member John Pappalardo was appointed to take over the position. However, the position did not officially become vacant until March 15 when the town received Mr. Seedorf’s resignation.
A special election for Lewisboro Town Justice will be held Nov. 3.
According to a press release from the U.S. Attorney’s Office for the Southern District of New York, from the income Mr. Seedorf earned from 2005 through 2008, he accrued approximately $323,000 of federal income tax liability. In addition, he accrued a federal income tax liability of approximately $164,000 from his income between 2009 and 2013.
The Internal Revenue Service made several attempts from January 2010 to June 2013 to collect Mr. Seedorf’s 2005 through 2008 tax liability, to which he failed to respond. Mr. Seedorf also hid from the IRS $1,524,116 worth of funds, received in connection with the settlement of a civil lawsuit, during an interview in December 2014, the press release stated.
The money from the civil settlement was dispersed between various accounts including his personal bank account, his law firm’s operating account, his law firm’s attorney trust account and his brother-in-law’s personal account, in an attempt to hide the source of the funds, the U.S. Attorney’s office said.
Mr. Seedorf shorted the IRS over $200,000 in total, which includes penalties and interest, it added.
In addition to the prison term, Judge Seibel ordered Mr. Seedorf to serve three years of supervised release and pay a $55,000 fine. Mr. Seedorf has already paid $207,219 in restitution to the IRS.
“Marc Seedorf, a member of the judiciary and former Assistant District Attorney, knew well his obligation under the law to file income tax returns and pay tax when due,” Acting U.S. Attorney Audrey Strauss said. “Instead, he chose to conceal assets and provide false information to the IRS.”