Two New Jersey Construction Employees Admit Tax Charges And Other Fraudulent Schemes
TRENTON, N.J. – Two employees of related Parsippany, New Jersey,-based construction companies today admitted underreporting significant amounts of cash income on their tax returns, U.S. Attorney Paul J. Fishman announced.
Joseph Carsillo, 46, of East Hanover, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return for calendar year 2010, and one count of bankruptcy fraud. Carl J. Corso, 59, of Hamilton Township, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return in calendar year 2010, and one count of engaging in a mail fraud scheme to defraud the state of New Jersey with respect to unemployment compensation benefits.
The defendants were previously charged in separate complaints in November 2013. Both of the pleas were entered today before U.S. District Judge Michael A. Shipp in Trenton federal court. Charges against a third defendant, Frank Chimento, III, 46, of Verona, New Jersey, remain pending.
According to the documents filed in this case and statements in court:
Chimento Construction, Chimento Construction Services, and FAC Construction, were commingled companies specializing in commercial masonry and concrete work (the “Chimento Companies”). From 2008 through 2011, the Chimento Companies’ primary construction job was the Palmer Square project in Princeton, New Jersey. Chimento Companies operated a cash payroll for a significant portion of the wages paid to employees during the period 2006 through 2011.
Carsillo started working for the Chimento Companies in 2007 and was the project superintendent at Palmer Square. He admitted that he received cash wages from the Chimento Companies of $66,865 in 2010, which he failed to include on his tax return. He also admitted in court that he failed to include cash wages of $58,161 on his 2009 return and $42,440 on his 2011 return.
Carsillo also admitted that he made false statements at a bankruptcy hearing on April 28, 2011, regarding his combined current monthly income and his monthly gross wages for the prior six-month period.
Corso started working for the Chimento Companies on Aug. 12, 2009 and worked through 2011. In addition to payroll checks, Corso requested and received cash wages from the Chimento Companies. He disclosed to his return preparer only the wages he received by payroll check and deliberately omitted the cash payments and certain supplemental paychecks from his personal tax returns despite knowing that these payments should have been included on these returns.
Corso received unreported cash income of $52,780 in 2010, as well as unreported income of $10,074 in 2009, and $34,492 in 2011.
Corso further admitted that on Nov. 1, 2009, he falsely advised the N.J. Department of Labor and Workforce Development that he was no longer working and reactivated an earlier application for unemployment benefits. He collected $19,988 in unemployment benefit checks through the U.S. mail.
As part of their guilty pleas, the two defendants agreed to make full restitution to the IRS for all losses resulting from the filing of false tax returns. Corso agreed to make restitution to the NJDOL-WD with regard to his fraudulent unemployment compensation claim.
The charge of subscribing to a false tax return is punishable by a maximum potential penalty of three years in prison; the charge of mail fraud is punishable by a maximum potential penalty of twenty years in prison; and the charge of bankruptcy fraud is punishable by a maximum potential penalty of five years in prison. All charges are punishable by a maximum $250,000 fine. Sentencing for both defendants is scheduled for Dec. 18, 2014.
U.S. Attorney Fishman praised the special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Cheryl Garcia New York Regional Office; and special agents of IRS-Criminal Investigation, under the leadership of Acting Special Agent in Charge Jonathan D. Larsen; for investigation leading to today’s guilty pleas. He also thanked the N.J. Department of Labor and Workforce Development, under the leadership of Commissioner Harold J. Wirths, for its assistance in the investigation.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations in the complaint against Chimento are merely accusations, and he remains innocent unless and until proven guilty.
Carsillo: Lorraine S. Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
Corso: Lisa Mack Esq., Assistant Federal Public Defender, Newark