CONTACT: Gina Balaya (313) 226-9758

                      Stephen Moore, IRS CI (313) 628-3307
 

FOR IMMEDIATE RELEASE:
 
 

Jeffrey Collins, United States Attorney, and Mark Kroczynski, Special Agent in Charge of Internal Revenue Service Criminal Investigation, announced that on January 9,2003, Remo Polselli, 46, of Bloomfield Township, Michigan, pleaded guilty to one count of failure to account for and pay withholding and Social Security Taxes and two counts failure to file federal income tax returns for the years 1995 and 1996. The plea was entered before United States District Judge Nancy G. Edmunds.

Mr. Collins stated, " From 1993 through 1997, Mr. Polselli owned and operated the Plaza Hotel, in Southfield, Michigan, through Prudential Management Corporation and Infinity Group, Ltd., Inc. Mr. Polselli had a duty to collect and pay over federal withholding taxes for his employee and intentionally failed to pay the IRS the collected federal income taxes and Social Security taxes withheld from the Plaza Hotel employees wages, during that time period. He deducted and collected over $2,469,000 in withholding and Social Security Taxes from his employees. In addition, Mr. Polselli failed to file personal income tax returns after grossing approximately $602,000 in 1995 and $697,000 in 1996."

Failure to account for and pay withholding and Social Security Taxes is a felony, in violation of Title 26, United States Code, Section 7202. Conviction carries a maximum penalty of five years imprisonment and a $250,000 fine. Failure to file federal income tax returns is a misdemeanor, in violation of Title 26, United States Code, Section 7203. Each count of conviction carries a maximum penalty of imprisonment not more than one year and a $100,000 fine. The sentence will be imposed under the United States Sentencing Guidelines according to the nature of the offense and the criminal background, if any, of the defendant.

Mr. Kroczynski stated, " This is the third significant payroll tax investigation conducted locally by IRS Criminal Investigation in the last 6 months. This type of crime has detrimental consequences to both the taxpaying public and the Government. It also results in both individual and corporate victims. The bottom line is, these funds end up lining the pockets of those few individuals who have a fiduciary responsibility to file and pay over the payroll taxes. IRS Criminal Investigation will aggressively identify and investigate these types of crimes to maintain the integrity of the tax system."

Mr. Polselli will be sentenced on May 20, 2003, at 2:00 pm, in front of United States District Judge Nancy G. Edmonds. Mr. Collins commended the agents of the Internal Revenue Service Criminal Investigation for their work in this investigation. The prosecution is being handled by Assistant United States Attorney Karl R. Overman.