Williamsville Business Owner Convicted on Multiple Charges of Tax Fraud
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Carlo J. Marinello, II, 68, of Williamsville, N.Y., was convicted by a federal jury of one count of obstructing and impeding the due administration of the Internal Revenue Code, four counts of failing to file personal income tax returns, and four counts of failing to file corporate tax returns with the Internal Revenue Service. The charges carry a maximum sentence of three years in prison, a fine of $250,000 or both.
Assistant U.S. Attorneys Russell T. Ippolito, Jr. and John E. Rogowski, who handled the prosecution of the case, stated that Marinello was the manager and owner/operator of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to commercially transport letters and documentation between businesses in New York and Canada. The business earned hundreds of thousands of dollars in revenues but the defendant failed to file tax returns for the company or personal tax returns for earned income.
According to the Government’s evidence, Marinello hid the income and obstructed and impeded the due administration of the Internal Revenue Code by: (1) failing to maintain corporate books and records for Express Courier; (2) failing to provide his accountant with complete and accurate information related to the defendant’s personal income and the income of Express Courier; (3) destroying, shredding and discarding business records of Express Courier; (4) cashing business checks received by Express Courier for services rendered; (5) hiding income earned by Express Courier in personal and other non-business bank accounts; (6) transferring assets to a nominee; (7) paying employees of Express Courier with cash; and (8) using business receipts and money from business accounts to pay personal expenses, including the mortgage for the residence in which the defendant resided and expenses related to care for Marinello’s mother care at a senior living center.
The defendant failed to file personal income tax and corporate tax returns for tax years 2005 through 2008.
The verdict is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.