An indictment was unsealed today charging Dominick Pannitti, formerly of North Bellmore, N.Y., with tax crimes, the Justice Department announced.
According to the indictment, which was returned by a grand jury on Sept. 26, 2013, Pannitti was Head of Operations at a securities brokerage firm in Syosset, N.Y. The securities firm had an automated system designed to adjust customers’ trading accounts for amounts less than $1,000. During 2005 and 2006, Pannitti used the automated system to credit his own trading accounts hundreds of times in increments less than $1,000. Pannitti was not entitled to most of these credits, which totaled over $570,000. Pannitti concealed from his accountant the income he obtained and failed to report the income on his tax returns.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. Pannitti faces a potential maximum sentence of eight years in prison and a potential fine of up to $500,000.
The case was investigated by the Internal Revenue Service (IRS) - Criminal Investigation and the FBI. The case is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.