October 31, 2005

PRESS RELEASE

FORMER SPRINGFIELD MAYORAL CHIEF OF STAFF,
POLICE OFFICER AND BAR OWNER
INDICTED FOR INCOME TAX EVASION AND WITNESS TAMPERING

Springfield, MA... A former Mayoral Chief of Staff, a former Springfield Police Officer and a Springfield bar owner were all arrested today on federal tax and witness tampering charges.

United States Attorney Michael J. Sullivan; Rebecca A. Sparkman, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation; Kenneth W. Kaiser, Special Agent in Charge of the Federal Bureau of Investigation in New England; and Peter C. Emerzian, Special Agent in Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General, announced today that a sixteen-count Indictment was unsealed charging ANTHONY ARDOLINO, CHESTER ARDOLINO and MATTHEW CAMPAGNARI with Conspiracy to Defraud the United States and 4 counts each of Filing False Personal Income Tax Returns. CAMPAGNARI was also charged separately with three counts of Witness Tampering.

ANTHONY ARDOLINO, age 35, of 128 Dayton Avenue, Springfield, Massachusetts, formerly worked as the Chief of Staff for former Mayor Michael Albano. ARDOLINO's brother, CHESTER ARDOLINO, age 38, of 84 Wheeler Avenue, Springfield, Massachusetts, formerly worked as a police officer for the Springfield Police. CAMPAGNARI, age 39, of 395 Porter Lake Drive, Longmeadow, Massachusetts, is a private real estate developer and bar owner.

"The public places extraordinary trust in those it gives the greatest authority; with that authority comes the obligation to act scrupulously in the conduct of official business," stated U.S. Attorney Michael J. Sullivan. "The positions of Chief of Staff to the Mayor and Police Officer both carry extraordinary power and responsibility. It is unacceptable that individuals, as alleged here, would use their positions of authority to obtain favors of financial benefit for friends and associates. We in law enforcement will continue to root out corruption and bring prosecutions whenever possible - the citizens of Massachusetts deserve nothing less."

It is alleged that the defendants conspired to under-report and conceal income and expenses of the bars they owned as well as their personal incomes in order to avoid paying federal taxes. The Indictment alleges that as a result of their tax fraud conspiracy, the defendants collectively did not report approximately $725,000 in additional income and employee wages and failed to pay approximately $300,000 in additional federal taxes.

According to the Indictment, CAMPAGNARI owned several bars in the Springfield area. In the summer of 1997, ANTHONY ARDOLINO, CHESTER ARDOLINO, and CAMPAGNARI decided to open a bar together, which later became known as The Civic Pub located at 1248-1252 Main Street in Springfield. CAMPAGNARI and the ARDOLINOS, however, allegedly decided to keep the ARDOLINOS' ownership interests hidden due to their positions with the City of Springfield. CAMPAGNARI and the ARDOLINOS owned The Civic Pub until February 2000 when they sold the bar for $150,000. It is alleged that CAMPAGNARI and the ARDOLINOS, however, reported the sale price as only $50,000.

According to the Indictment, shortly after the sale of The Civic Pub, CAMPAGNARI and the ARDOLINOS decided to open another bar together, which later became known as The Pour House located at 280 Worthington Street in Springfield. CAMPAGNARI and CHESTER ARDOLINO owned the bar publicly, but in reality allegedly shared the ownership with three other individuals, including ANTHONY ARDOLINO. Allegedly, ANTHONY ARDOLINO's ownership interest once again remained hidden due to his position with the City of Springfield.

According to the Indictment, as part of the tax fraud, CAMPAGNARI and the ARDOLINOS paid employees of both The Civic Pub and The Pour House in cash and distributed cash payments to themselves while failing to pay federal employment, Social Security, Medicare and income taxes due on those cash payments.

Rebecca A. Sparkman, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation stated, "The bottom line is that public corruption is motivated by greed, as shown by the alleged violations of the tax law."

The Indictment further alleges that the ARDOLINOS used their city positions to assist CAMPAGNARI and other members of the conspiracy. Specifically, the Indictment alleges that the ARDOLINOS fixed $14,000 worth of parking tickets for CAMPAGNARI and others. It is further alleged that in April 2001, in his official position as Mayoral Chief of Staff, ANTHONY ARDOLINO attempted to have the Springfield City Council cause $62,000 in public funds to be used to pay for the infrastructure costs of the Lemnos Lane subdivision, a private real estate development owned by CAMPAGNARI, without disclosing his past or present hidden business interests with CAMPAGNARI. CAMPAGNARI ultimately withdrew this request in May 2001, after a public outcry.

The Indictment also alleges that on separate occasions, CAMPAGNARI threatened two Grand Jury witnesses during the investigation of this case. It is alleged that CAMPAGNARI told both witnesses in substance to keep their mouths shut, showing one a pistol he was holding and telling the other that he should, take the "fucking Fifth Amendment." It is further alleged that CAMPAGNARI asked a third Grand Jury witness to falsely claim ownership of illegal video poker machines and offered to pay the witness' legal fees and any outstanding tax liabilities due and owing from unreported income received from the machines.

If convicted, the defendants each face a maximum term of imprisonment of 5 years and a fine of $250,000 for each of the Conspiracy and Tax Fraud charges. Additionally, CAMPAGNARI faces a maximum term of imprisonment of 10 years and a fine of $250,000 for each of the 3 Witness Tampering charges.

This case is the result of a joint investigation by the U.S. Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development's Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney William M. Welch, II in Sullivan's Springfield Office and John McAdams, Trial Attorney in the U.S. Department of Justice's Tax Division.

The allegations contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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