Williamsville Man Sentenced On Tax Fraud Charges

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carlo J. Marinello, Jr., 69, of Williamsville, NY, who was convicted after a jury trial 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, was sentenced to 36 months in prison by Senior U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay $351,763.08 in unpaid taxes. 

Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Marinello was the manager and owner of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to commercially transport letters and documentation between businesses in New York and businesses in 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.

Although required to do so, Marinello failed to file personal income tax and corporate tax returns for tax years 2005, 2006, 2007 and 2008.

The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, New York Field Office.