Former Long Island businessman Joseph Ciccarella has been sentenced to 18 months in federal prison for orchestrating a $1.6 million tax fraud scheme.
Ciccarella, the owner of construction-related companies BSI Consulting and KMS Mechanical, siphoned over $1.6 million from his businesses between 2009 and 2012. He used these funds for personal expenses and to fund other ventures, all while evading over $280,000 in taxes.
The 54-year-old Glen Head resident pleaded guilty on November 3, 2016, before Judge Alvin K. Hellerstein. In addition to his prison term, Ciccarella was sentenced to three years of supervised release and ordered to pay a $100,000 fine.
Manhattan U.S. Attorney Preet Bharara commented, ‘Joseph Ciccarella used his companies as a piggy bank for his personal gain. By cashing sham checks and funneling funds to himself, he avoided paying his fair share of taxes.’
Investigations by the IRS Criminal Investigation unit led to Ciccarella’s downfall. According to the DOJ USAO, Ciccarella had entered into corrupt arrangements with third-party companies, having them cash checks drawn on his corporate accounts and returning the cash to him after taking a fee.
Ciccarella has already paid $284,000 in restitution to the IRS. This case was handled by the Office’s Complex Frauds and Cybercrime Unit, with Special Assistant United States Attorney Stanley J. Okula Jr. leading the prosecution.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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