July 25, 2002

PRESS RELEASE

PAINTER FROM BELMONT PLEADS GUILTY TO CHARGES OF TAX EVASION

Boston, MA... A Belmont man pleaded guilty today in federal court to charges of 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 Joseph A. Galasso, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation in New England, announced today that LEONARD G. RIZZUTO, age 39, of 384 Brighton Street, Belmont, pleaded guilty before U.S. District Judge Rya Zobel to a superseding information charging him with three counts of tax evasion.

At today's plea hearing, Assistant U.S. Attorney Carmen M. Ortiz, told the Court that if the case had proceeded to trial, the government would have proven that RIZZUTO, a self-employed painter running "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, RIZZUTO filed a false and fraudulent tax return which did not reveal the accurate income he earned from his painting business. RIZZUTO concealed his true and correct income by cashing checks received from customers at banks where the individual checks had been drawn and then depositing the cash into his personal bank account. To further his concealment, RIZZUTO did not provide his tax preparer with complete and accurate information about his income that would have resulted in a factual return. As a result of RIZZUTO's tax evasion, the tax due and owing to the IRS for the three years at issue is over $28,000, excluding what is owed in interest and penalties.

Judge Zobel scheduled sentencing for October 16, 2002. The maximum penalties that RIZZUTO faces on each count is 5 years' imprisonment, to be followed by 3 years of supervised release, and a $100,000 fine.

The case was investigated by the U.S. Internal Revenue Service. 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