IRS Criminal Investigations in New Jersey
IRS-Criminal Investigation serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. Below are cases that the IRS Criminal Investigations unit in New Jersey is currently working on:
Feb. 5, 2020
Hoboken-Based Accountant Sentences to 12 Months for Tax Evasion
A Hoboken-based accountant was sentenced to a year and a day in prison for evading more than $914,000 in taxes on income he earned from his accounting practice and various rental properties he owned, U.S. Attorney Craig Carpenito announced today.
Louis Picardo, 64, of Hoboken, New Jersey, previously pleaded guilty to an information charging him with four counts of income tax evasion. U.S. District Judge Stanley R. Chesler imposed the sentence on Feb. 4, 2020 in Newark federal court.
According to documents filed in this case and statements made in court:
Picardo served as the Tax Collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County. Picardo failed to report approximately $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of approximately $914,908.
In addition to the prison term, Judge Chesler sentenced Picardo to two years of supervised release and ordered him to pay restitution to the IRS in the amount of $914,908.
U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentence.
The government is represented by Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Peter Willis, Esq., Jersey City
Jan. 21, 2020
New Brunswick Tax Preparer Pleads Guilty to Tax Evasion
The owner of a tax return preparation business located in North Brunswick, New Jersey, pleaded guilty today to income tax evasion.
Juan Solano, 45, a resident of North Brunswick, NJ, entered his plea in Trenton federal court before U. S. District Judge Peter G. Sheridan. Solano pleaded guilty to one count of personal income tax evasion pertaining to his 2016 tax return. Sentencing is scheduled for May 12.
“As we get ready to begin this year’s filing season, honest taxpayers need to be reassured that everyone is paying their fair share,” stated John R. Tafur, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “Today’s guilty plea should reassure those Americans who file accurate, honest and timely returns that the government will hold accountable those who do not.”
According to court documents and statements made in court:
Solano was the owner of J&C Solano Tax Service (J&C). During the calendar year 2016, Solano reported that he earned $113,263 in gross receipt from J&C. Solano admitted that he failed to report an additional $318,228 in gross receipts that he earned from J&C during the 2016 calendar year.
In addition, Solano admitted that he filed false personal tax returns and evaded his taxes for the years 2013, 2014 and 2015. In total, for the years 2013 through 2016, Solano owes the government approximately $299,274 in additional taxes based on his criminal conduct.
The count of tax evasion carries a statutory maximum prison sentence of five years and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims of the offense.
The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge John R. Tafur and the U.S. Attorney’s Office, under the direction of U.S. Attorney Craig Carpenito. The Government is represented by Assistant U.S. Attorney Cymetra Williams.
Defense Attorney: Michael S. Adelman, Esq. – Cherry Hill, NJ.