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Tax Preparer From Westchester Admits To Filing False Returns, Ordered To Pay $476K Tax Preparer From Westchester Admits To Filing False Returns, Ordered To Pay $476K
Tax Preparer From Westchester Admits To Filing False Returns, Ordered To Pay $476K As filing season nears, a former Westchester-based tax preparer is facing time behind bars after admitting to preparing and filing nearly $500,000 in false income tax returns. Michael Magnaldi, formerly of Pelham, who now lives in Florida, pleaded guilty in White Plains federal court to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return in 2016. U.S. Attorney Geoffrey Berman said that between 2014 and 2017, Magnaldi prepared 37 false Forms 1040 that contained, false information, false Schedule D …

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by Zak Failla
News
Area Business Owner Failed To Pay Taxes For Years, Lied To IRS, Feds Say Area Business Owner Failed To Pay Taxes For Years, Lied To IRS, Feds Say
Area Business Owner Failed To Pay Taxes For Years, Lied To IRS, Feds Say A Hudson Valley business owner is facing charges for allegedly “knowingly and willfully failing to pay over payroll taxes for his company and for corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws,” the U.S. Attorney’s Office announced. U.S. Attorney Geoffrey Berman said Dutchess County resident William Grogg, of Millbrook, has worked in the printing and publishing industry in and around Poughkeepsie since the 1980s, owning and managing the financial affairs of multiple companies.  During his three decades working in the industry, it i…

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by Zak Failla
News
Area Attorney Admits To Tax Evasion, Failure To Pay Over Payroll Taxes Area Attorney Admits To Tax Evasion, Failure To Pay Over Payroll Taxes
Area Attorney Admits To Tax Evasion, Failure To Pay Over Payroll Taxes An area attorney has admitted to tax evasion and failure to pay over payroll taxes. Francis O’Reilly, a Carmel attorney who lives in Danbury, pleaded guilty in White Plains federal court to one count of failing to pay over payroll taxes and one count of tax evasion for the calendar year 2015, U.S. Attorney Geoffrey Berman announced. Berman said that O’Reilly has been permitted to practice law in New York since 1989, and has been a self-employed attorney who worked out of Putnam County at the O’Reilly Law Practice. In 2015, O’Reilly admitted to withholding payroll taxes from the salaries of…

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by Zak Failla
News
Town Justice In Westchester Admits To Tax Evasion Town Justice In Westchester Admits To Tax Evasion
Town Justice In Westchester Admits To Tax Evasion A town justice in Northern Westchester has admitted to evading payment of more than $160,000 of Federal income tax over a 10-year period, according to authorities. Lewisboro Town Justice Marc Seedorf pleaded guilty to tax evasion before U.S. District Judge Cathy Seibel in White Plains Federal Court on Friday, Dec. 6. “As he admitted, for years Marc Seedorf flouted his obligations under the law to file tax returns and to pay taxes," U.S. Attorney for the Southern District of New York Geoffrey S. Berman said. "This was conduct that would be shameful for anyone, and all the more so …

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by Joe Lombardi
News
Ex-CEO From Area Sentenced For Embezzling $1.5 Million Ex-CEO From Area Sentenced For Embezzling $1.5 Million
Ex-ceo From Area Sentenced For Embezzling $1.5 Million A Hudson Valley man who embezzled $1.5 million from a nonprofit organization he helped found in Connecticut is going to spend more than a year in prison. Paul Gileno, 47, of Brewster, the founder and CEO of the United States Pain Foundation, was sentenced in Bridgeport district court to 12 months and one day in prison, followed by two years of supervised release, for embezzlement and failing to pay federal income taxes. Gileno operated the Middletown, Connecticut-based nonprofit organization, which was designed to find support and resources for individuals with pain issues.  Between …

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by Zak Failla
News
Father/Son Owners Of Area Auto Dealership Charged With Tax, Bank Fraud Father/Son Owners Of Area Auto Dealership Charged With Tax, Bank Fraud
Father/Son Owners Of Area Auto Dealership Charged With Tax, Bank Fraud A father and son who own a Hudson Valley auto dealership are facing charges for an alleged multi-million dollar tax and bank fraud scheme. Central Valley residents Mehdi and Saeed Moslem, the owners of the Exclusive Motor Sports car dealership in their Orange County hometown, were arrested and indicted for their roles in conspiring to defraud the United States, U.S. Attorney Geoffrey Berman announced. It is alleged that from 2009 through 2016, Mehdi Mosel, 70 and his son, 35, concealed millions of dollars in profits from the IRS that were tied to their dealership. Berman said that to fals…

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by Zak Failla
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Tax Preparer In Westchester Sentenced For Fraud For Second Time Tax Preparer In Westchester Sentenced For Fraud For Second Time
Tax Preparer In Westchester Sentenced For Fraud For Second Time A tax preparer in Northern Westchester will avoid jail time after admitting to tax fraud earlier this year. Steve Sabba, 61, of Yorktown Heights, and his company, Tax Pro Financial Network, Inc. was sentenced after pleading guilty in February to multiple charges of criminal tax fraud, felonies. Sabba has been sentenced to five years’ probation, during which he will be monitored by an authorized tax professional in the preparation of tax returns. He’s also made restitution of $25,270 to the IRS, $7,717 of which will be paid to Synchrony Bank. Tax Pro was sentenced to a three-year conditiona…

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by Zak Failla
News
Police Agencies In Area Warn Of Phone, IRS Scams Making The Rounds Police Agencies In Area Warn Of Phone, IRS Scams Making The Rounds
Police Agencies In Area Warn Of Phone, IRS Scams Making The Rounds Police agencies in the area are warning area residents to be wary as a new phone scam has been making the rounds in the area. A Mount Kisco woman reported to Westchester County Police investigators that she had been scammed out of $4,000 by a person claiming to be from the IRS late last month. According to the woman, she received a call saying that she was in tax arrears and she proceeded to follow the fraudster’s instructions to purchase gift cards and call back with the numbers associated with them. “Westchester County Police remind residents that the IRS will not contact taxpayers by ph…

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by Zak Failla
News
Westchester Bookkeeper Admits Assisting Restaurant Owner Evade Taxes Westchester Bookkeeper Admits Assisting Restaurant Owner Evade Taxes
Westchester Bookkeeper Admits Assisting Restaurant Owner Evade Taxes A former bookkeeper working for a prominent pizzeria owner in Fairfield and Westchester counties is facing time behind bars after admitting to helping her boss evade paying federal taxes. Queens Village resident Idalecia Lopes Santos, 59, has pleaded guilty in Bridgeport district court to one count of tax evasion for her role in helping Bruno DiFabio, the owner of several restaurants, avoid paying hundreds of thousands of dollars in taxes. Santos worked as an outside bookkeeper for DeFabio - who had restaurants in New Canaan; Wilton; Scarsdale; Stamford; Greenwich and Pound Ridge - while sh…

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by Zak Failla
Politics
NY Attorney General Sues Trump Treasury, IRS To Find Out Why Donor-Reporting Rule Was Scrapped NY Attorney General Sues Trump Treasury, IRS To Find Out Why Donor-Reporting Rule Was Scrapped
NY Attorney General Sues Trump Treasury, IRS To Find Out Why Donor-Reporting Rule Was Scrapped New York Attorney General Letitia James is once again taking on President Donald Trump’s administration, this time targeting the Treasury Department over failure to provide legally-required information. James announced that she and her contemporaries in New Jersey have filed a lawsuit against the U.S. Department of the Treasury and the IRS for failing to respond to records requests concerning the elimination of donor disclosure requirements for non-tax-exempt groups. According to James, the lawsuit “asks the court to compel the Treasury Department and IRS to respond as required by law to re…

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by Zak Failla
News
Alert Issued For Wire Fraud Scam Targeting Direct Deposit Info Alert Issued For Wire Fraud Scam Targeting Direct Deposit Info
Alert Issued For Wire Fraud Scam Targeting Direct Deposit Info A new phishing scam is targeting the HR departments of companies in an effort to reroute direct deposits. CNBC first reported that the new scam involves fraudsters rerouting direct deposit accounts, and once checks are made, the paycheck will instead go directly into the criminal’s account. According to KVC Health Systems, a child welfare nonprofit based out of the Midwest that was hit by the scam reported that the emails look legitimate and intentionally come from the company’s CEO, CFO or payroll director to increase the authenticity of the request. Reports state that the emails are diff…

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by Zak Failla
News
State Attorney General Issues Alert On Scams As Tax Day Nears State Attorney General Issues Alert On Scams As Tax Day Nears
State Attorney General Issues Alert On Scams As Tax Day Nears As April 15 approaches, the State Attorney General has issued an alert regarding tax scams. “Tax season is ripe with opportunity for scammers to prey on hardworking New Yorkers,” said Attorney General Letitia James. “These bad actors use a wide range of tactics to illegally cheat residents out of their money, including individuals who impersonate the IRS and businesses that bait-and-switch their tax preparation services." Tax scams come in many different forms, but some of the most common types include: Scammers impersonating the U.S. Treasury Department, the IRS, the Taxpa…

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by Valerie Musson