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United States Attorney's Office District of Connecticut
Press Release

June 2, 2011

STAMFORD MAN PLEADS GUILTY TO FEDERAL TAX
CHARGE STEMMING FROM EMBEZZLEMENT SCHEME

David B. Fein, United States Attorney for the District of Connecticut, announced that EUGENE CERIELLO, 47, of Stamford, waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of filing a false tax return.  The charge stems from CERIELLO’s failure to pay federal income taxes on hundreds of thousands of dollars of embezzled income.

According to court documents and statements made in court, CERIELLO was employed for approximately 10 years as the manager of Greenwich Automotive Services, an automotive service station formerly based in Greenwich.  As the manager, CERIELLO had complete control over the day to day operations of Greenwich Automotive Services, as well as complete access to the computerized records that the business maintained.  Between approximately 2005 and 2008, CERIELLO embezzled hundreds of thousands of dollars from Greenwich Automotive Services by taking cash generated from vehicle repair services, as well as from the sale of gasoline and other retail items.  CERIELLO regularly accessed the business’ computer system to alter the records of the amount of money the business received.

Between 2005 and 2008, CERIELLO deposited into his bank account approximately $638,000 in cash that had been embezzled from Greenwich Automotive Services, and failed to pay federal income taxes on this income.  For example, in 2008, CERIELLO deposited approximately $191,000 in cash into his bank account, but reported only $52,580 in income on his federal tax return.

According to CERIELLO’s plea agreement, the tax loss to the government as a result of this scheme is between $80,000 and $200,000.

Judge Underhill has scheduled sentencing for September 23, 2011, at which time CERIELLO faces a maximum term of imprisonment of three years and a fine of up to $100,000.  CERIELLO also will be required to pay back taxes, penalties and interest, which the government maintains totals approximately $300,000.

This matter was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Greenwich Police Department.  The case is being prosecuted by Assistant United States Attorney Douglas P. Morabito.

 

CONTACT:

 

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov

 

 

 

 

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