A Bayonne man who used check-cashing businesses to hide hundreds of thousands in income he earned from his construction companies pleaded guilty to tax evasion last week, the Newark office of the IRS said in a statement.
Patrick Franconeri, 57, owned several firms based in New Jersey but failed to report any income from them in 2014. He admitted in court that he actually made more than $1.3 million that year, income for which he owes $558,439 in taxes, the IRS said.
Franconeri also defrauded the bankruptcy courts, authorities said. In 2010, he filed for relief under Chapter 7 but failed to tell officials about his companies and the nearly $1 million he earned from them over the preceding two years.
“Fraud and dishonesty in bankruptcy court undermines the integrity of these important proceedings,” said John R. Tafur, Special Agent in Charge with the Newark field office of the IRS Criminal Investigation unit. “Intentionally concealing assets, failing to accurately report income and failing to file tax returns is criminal activity that will not be tolerated.”
In addition to tax evasion, Franconeri also pleaded guilty to bankruptcy fraud. He is scheduled to be sentenced Sept. 16.
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