Owner Of Construction Company Admits Filing False Tax Returns And Underreporting More Than $1 Million In Income
NEWARK, N.J. - The owner and operator of Larino Masonry Inc., a construction company based in northern New Jersey, today admitted underreporting more than $1 million diverted from his business for his personal benefit, U.S. Attorney Paul J. Fishman announced.
Juan Larino, 53, of West New York, N.J., pleaded guilty before U.S. District Judge Katherine S. Hayden in Newark federal court to an information charging him with one count of filing a false federal personal income tax return.
According to documents filed in this case and statements made in court:
During his operation of the business, Larino received checks made payable to Larino Masonry Inc. Larino admitted that instead of depositing all of the payments into bank accounts held by the business, he cashed some of the checks for his own personal benefit.
For the tax years 2010 through 2011, Larino filed individual income tax returns in which he claimed to report all of his income from the construction business. However, Larino failed to report approximately $1.1 million in cash that he kept from checks made payable to Larino Masonry Inc. Larino’s failure to truthfully disclose income he received as owner of the company resulted in a tax loss to the United States of $200,000 to $400,000.
As part of his guilty plea, Larino agreed to make full restitution for all losses resulting from his false tax returns. He also agreed to forfeit $575,000 in a related civil case with the U.S. Attorney's Office.
The subscribing to false tax returns charge carries a maximum potential penalty of three years in prison and a $100,000 fine. Sentencing is scheduled for Sept. 29, 2014.
U.S. Attorney Fishman credited special agents of the IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney's Office Asset Forfeiture and Money Laundering Unit.
Defense counsel: Vincent Martinelli Esq., Staten Island, N.Y.