2002-04-11 -- Pino et al. -- Guilty Pleas -- News Release

Owners, Accountant of Hoboken Towing Company Admit Tax Evasion on $900,000 in Proceeds

NEWARK - Three people, including a certified public accountant, pleaded guilty today to evading federal income tax on more than $900,000 in cash proceeds they received in connection with the operation of Hoboken Auto Body in Hoboken, New Jersey, U.S. Attorney Christopher J. Christie announced.

Theresa Pino, 53, of Hoboken, pleaded guilty to two counts of an Information, charging her with federal income tax evasion in connection with her personal tax return for 1996 and subscribing to a false corporate tax return for Hoboken Auto Body for 1997.

Vincent Tubito, 51, formerly of Hoboken, and now of Davie, Fla., also entered guilty pleas to personal tax evasion for 1996 and assisting in filing a false corporate tax return for 1997. Tubito is a certified public accountant, whose wife is a shareholder of Hoboken Auto Body. Tubito maintained computer records of the business cash receipts.

Bill Pino, 39, of Lake Hiawatha, pleaded guilty to one count of an Information, which charged that he subscribed to a false personal tax return in 1996.

When sentenced by U.S. District Judge Alfred M. Wolin, Theresa Pino and Vincent Tubito face a maximum of five years in federal prison and a $100,000 fine for tax evasion, and three years and a $100,000 fine for subscribing falsely to a tax return.

Bill Pino faces a maximum three years in prison and a $100,000 fine. In addition, the defendants must file amended personal and corporate tax returns prior to sentencing and may be ordered to pay the costs of the prosecution of the case.

The defendants admitted in court that each had an interest in Hoboken Auto Body, a family-owned business, which generated large amounts of cash income from its several auto-related businesses, including used auto parts, private and municipal towing and the purchase and sale of used vehicles.

Each defendant admitted that they were aware that Hoboken Auto Body maintained a "double set of books," that is, one set showing the cash profits and one set not showing the cash profits, and that they had an agreement to share equally in these cash profits. The defendants admitted that from 1994 through 1997 cash proceeds totaling about $100,000 in 1994, $250,000 in 1995, $325,000 in 1996 and $225,000 in 1997, were distributed equally among the shareholders.

Vincent Tubito admitted preparing and keeping computer spread sheets showing the true and accurate financial numbers for all cash transactions for Hoboken Auto Body, including amounts of cash profits received and distributed to shareholders. Theresa Pino, the daily manager of the business, admitted providing the false set of books to an outside accountant for the preparation of the corporate tax return.

Under U.S. Sentencing Guidelines, Judge Wolin will determine the defendants' actual sentences based upon a formula that takes into account the severity and characteristics of the offenses, and the defendants' criminal histories, if any.

Parole has been abolished in federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Under an information, a defendant waives the right to have his case presented to a federal grand jury and, instead, pleads to charges presented by the Government.

Christie credited Special Agents of the Internal Revenue Service, under the direction of Special Agent in Charge Anne D. Fahy; and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Phillip W. Thomas, for developing the case against the defendants.

Defense Counsel:

Theresa Pino: Frank Crupi, Esq., Livingston

Bill Pino: James Patton, Esq., Livingston

Vincent Tubito: Warren Feldman, Esq., New York