United States Attorney's Office District of Connecticut
Press Release

NEW HAVEN CAR DEALER WHO FILED FALSE REPORTS WITH IRS IS SENTENCED

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that MICHAEL CESTARO, age 27, of 543 Clintonville Road, North Haven, Connecticut, was sentenced today by United States District Judge Mark R. Kravitz in New Haven on his conviction for violating federal currency reporting laws. Judge Kravitz sentenced CESTARO to two years of probation, the first six months of which he must serve in home confinement with electronic monitoring. Judge Kravitz also ordered CESTARO to perform 200 hours of community service and to pay a fine in the amount of $10,000. On April 18, 2005, CESTARO waived his right to be indicted by a federal grand jury and pleaded guilty to a two-count Information charging him with one count of filing a false IRS Form 8300 and one count of failing to file an IRS Form 8300 when one was required to be filed.

According to documents filed with the Court and statements made in court, the Federal Bureau of Investigation and Internal Revenue Service conducted an undercover operation in the summer of 2003, which targeted Cestaro and Sons, Inc., a local pre-owned car dealership. During the undercover operation, a law enforcement officer, who was posing as a drug trafficker, purchased a 2001 Chevy Tahoe for $30,540 in cash. During the negotiations for the Chevy Tahoe, the undercover officer told CESTARO and other employees at the dealership that the money was from drug proceeds and that he did not want his name on any of the paperwork. CESTARO agreed to sell the vehicle to the undercover agent, but placed all of the paperwork in the name of the girlfriend of the undercover agent, who was also an undercover agent. The law requires that all trades and businesses, which includes car dealerships, file a Form 8300 with the IRS when it receives more than $10,000 in cash in a single transaction or related transactions during a 12-month period. CESTARO filed the IRS Form 8300, but falsely identified the undercover agent’s girlfriend as the purchaser of the vehicle, giving rise to the false reporting offense.

Count Two involved the purchase of a 1998 Lexus GS300 in June 2003. As further revealed in court proceedings, a customer negotiated for the purchase of the Lexus for $18,000. After making a $1,000 cash down payment, the customer walked into the dealership to pay the balance in cash. However, CESTARO refused to take more than $10,000 because he did not want to file the Form 8300. Instead, CESTARO took $9,000 in cash and directed the customer to return with a cashier’s check for $9,000.

“This investigation and prosecution should serve as a warning to all business owners who willfully ignore IRS reporting requirements and knowingly accept payment for products and services in drug money,” U.S. Attorney O’Connor stated.

This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation.. This case was prosecuted by Assistant United States Attorney Mark D. Rubino.

CONTACT:

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