| FOR IMMEDIATE RELEASE
THURSDAY, MARCH 23, 1995
TDD (202) 514-1888
EXECUTIVE OF NEW YORK CITY PRINTING COMPANY
CHARGED IN TAX FRAUD CONSPIRACY
WASHINGTON, D.C. - An executive of a New York City printing company that supplied materials for advertising and promotions displays was charged today with tax fraud for failing to report as income nearly $300,000 in cash he received as part of an illegal check-cashing scheme.
The tax case is part of the Department of Justice's antitrust investigation of bid rigging, commercial bribery, fraud and tax-related offenses in the display industry.
Six individuals and one corporation have pleaded guilty to various federal charges as a result of the investigation which began in 1992.
The Department's Antitrust Division accused Eugene A. Veltri, owner and president of Forms & Graphics Inc., of conspiring to defraud the Internal Revenue Service from 1990 through September 1992 by overstating his company's true business expenses and failing to declare as business or personal income money generated by false billings.
According to a charge filed in U.S. District Court in New York City, Veltri wrote $338,000 in checks to Van Dyke Color Litho, a sham corporation controlled by Robert Berger. Veltri then received about $297,440 in cash from Berger. Berger pleaded guilty to tax evasion in October 1994 and is expected to be sentenced in April.
Anne K. Bingaman, Assistant Attorney General in charge of the Antitrust Division, said both cases are part of an ongoing investigation by the Division's New York Office into the point-of-purchase display industry. The investigation is being conducted with the assistance of the Federal Bureau of Investigation and the Internal Revenue Service.
The maximum penalty for an individual convicted of a conspiracy to defraud the IRS is five years in prison and a fine not to exceed the greatest of $250,000, twice the pecuniary gain the individual derived from the crime or twice the pecuniary loss caused to the victims of the crime.