States Attorney's Office District of Connecticut
|March 3, 2011||
NORTH HAVEN RESTAURANT OWNER SENTENCED
David B. Fein, United States Attorney for the District of Connecticut, announced that VIRGINIA MAZZARO, 63, of North Haven, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to five months of imprisonment, followed by five months of home confinement and one year of supervised release, for failing to pay approximately $669,000 in taxes over a five-year period on income generated through a bar and restaurant MAZZARO operates in North Haven. MAZZARO also was ordered to pay a fine in the amount of $5000.
“We all have an obligation to pay the taxes we owe, and business owners are no exception,” stated U.S. Attorney Fein. “Those who cheat the government cheat their fellow citizens who file honest tax returns. The risk of not doing so is clear: A felony conviction, loss of liberty, and financial penalties that far exceed the original amount of taxes owed.”
According to court documents and statements made in court, MAZZARO owns and operates J. Roos, a sports bar and restaurant located in North Haven. From 2004 to 2008, MAZZARO failed to deposit all of the cash receipts generated by the restaurant into the bank account of the business. Instead, she deposited the restaurant’s cash receipts into her personal bank account and then invested most of those funds in certificate of deposit (CD) accounts at various financial institutions. During this time, MAZZARO also structured cash deposits into her personal and business bank accounts in an attempt to evade financial institution reporting requirements for cash transactions of more than $10,000.
MAZZARO has admitted that she knowingly filed materially false federal individual income tax returns for the 2004 through 2008 tax years. For the five-year period, MAZZARO claimed total income of $904,970. However, during that same time, she failed to report $1,807,221 in gross receipts generated by the operation of the restaurant, underpaying federal taxes in the approximate amount of $669,000.
On September 21, 2010, MAZZARO pleaded guilty to one count of filing a false federal tax return. As a condition of her plea agreement, MAZZARO has paid the IRS $1,412,102.37 in back taxes, penalties and interest. MAZZARO also will pay approximately $145,000 in unpaid federal payroll taxes.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and was prosecuted by Assistant United States Attorney Douglas P. Morabito.
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