A longtime Rutland attorney has formally admitted to federal charges of understating income on his federal taxes.
John Canney III entered guilty pleas Thursday in federal court in Burlington to charges of filing a false individual tax return as well as filing a false corporate tax return, both for the 2011 tax year, according to court records.
As part of a plea deal he faces up to three years in prison and $250,000 in fines. The sentence will be determined with the judge taking into consideration federal sentencing guidelines.
The sentencing hearing is set for Sept. 21. Canney remains free on conditions.
The charges do not state specifically by how much Canney understated his taxes. However, the plea agreement says Canney and prosecutors agreed the tax loss is between $100,000 and $250,000.
The charging documents and plea agreement were both filed in federal court last month.
Canney is the sole owner of John R. Canney III, P.C., a law firm on Merchants Row in Rutland. His practice focuses on bankruptcy law.
