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The state has decided not to prosecute a former owner of the now foreclosed Lighthouse Inn in New London on tax evasion charges.
The prosecution entered a nolle in the case of Maureen Clark of Stonington when Clark appeared in Superior Court in Hartford, according to her attorney, Anthony R. Basilica.
"The state chose, based upon the arguments we made, to drop the cases against her after we established they couldn't prove them," said Basilica.
"We provided them with a whole host of information that basically showed she didn't do wrong."
The prosecutor who handled the case could not immediately be reached for comment.
Clark had been charged in 2009 with 39 counts of tax evasion, including 18 counts of failure to pay room occupancy taxes, 11 counts of failure to pay sales taxes and five counts each of failure to file sales and room occupancy taxes.
The state Department of Revenue Services alleged that Clark, who held the sales tax license for the Inn, failed to turn over sales and room taxes to the state.
Clark and her former business partner, Christopher Plummer, have been plagued by legal problems stemming from their ownership of the Lighthouse Inn, which closed in August 2008, and other business deals.
Clark and Plummer were charged in 2008 with failure to pay wages at the inn. Clark paid the wages and the charges were not prosecuted, according to her attorney.
Federal authorities charged the pair last year with defrauding investors of $1.7 million in a bogus scheme to build a Mississippi resort casino.
The case was to go to trial in May but was delayed.