North Tonawanda Tax Preparer Sentenced for Tax Evasion and Bank Fraud

BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Vincent P. Mangione,49 of North Tonawanda, N.Y., who was convicted of tax evasion and bank fraud, was sentenced to 30 months in prison and ordered to pay more than $800,000 in restitution to the victims by Chief U.S. District Judge William M. Skretny.

Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant operated MTS Payroll and Mil-Sher Tax Services, Inc. The companies provided payroll services and bookkeeping and tax preparation for individuals and businesses.  Between December 2002 and April 2007, Mangione, without the knowledge of the businesses he represented, filed fraudulent quarterly federal tax returns. In order to avoid detection, the defendant obtained the actual amount of withholding tax the businesses owed to the Internal Revenue Service. Mangione then filed a false quarterly tax return that under represented the amount owed to the IRS and would keep the difference for his own benefit.

In addition, in December 2007, the defendant defrauded a local bank by depositing checks into an account, which he knew had insufficient funds, and then withdrew the funds from the account prior to the checks clearing. The loss associated with both schemes totaled over $800,000

The sentencing is the culmination of an investigation on the part of Special Agents of the Criminal Division of the Internal Revenue Service, under the direction of Special Agent in Charge Toni Weirauch and the United States Secret Service under the direction of Special Agent in Charge Tracy Gast.