May 9, 2002

PRESS RELEASE

BELMONT PAINTER CHARGED WITH TAX EVASION

Boston, MA... A Belmont man was charged today in federal court with tax evasion for failing to report a substantial amount of income on his tax returns, earned from his painting business.

United States Attorney Michael J. Sullivan and Michael Lahey, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced today that LEONARD G. RIZZUTO, age 39, of 384 Brighton Street, Belmont, was charged in an information with three counts of tax evasion.

The information alleges that RIZZUTO, a self-employed painter operating "Belmont Painting," failed to report a substantial amount of income on his tax returns for the years 1996, 1997, and 1998. For each of the taxable years charged in the information, it is alleged that RIZZUTO filed a false and fraudulent tax return which did not reveal the accurate income he earned from his painting business. It is alleged that RIZZUTO concealed his true and correct income by depositing sales proceeds obtained from the business in separate bank accounts held by him for business and personal purposes. Additionally, the information alleges that RIZZUTO cashed checks received from customers at banks where the individual checks had been drawn and then deposited the cash into a bank account held by him, thus concealing the source of the funds. To further his concealment, the information alleges that RIZZUTO withheld information from his tax preparer by providing a written summary of purported sales gross receipts rather than providing complete and accurate information which disclosed actual gross receipts. It is alleged that as a result of the tax evasion, the tax due and owing to the IRS for the years at issue is in excess of $47,000, excluding interest and penalties.

If convicted on these charges, RIZZUTO faces up to 5 years' imprisonment, to be followed by 3 years of supervised release, and a $100,000 fine on each count.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Carmen M. Ortiz in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139