Joseph J. Cipolla Jr, Tax Evasion, Illinois 2023

CHICAGO — Joseph J. Cipolla Jr., a 39-year-old businessman from Bloomingdale, Ill., has been sentenced to 9 years in federal prison for evading nearly half a million dollars in taxes and engaging in a variety of fraud schemes.

Cipolla knowingly and willfully failed to file individual income tax returns from 2015 to 2020, causing losses of $415,043 to the IRS and $75,045 to the State of Illinois. He concealed his receipt of income by engaging in affirmative acts of tax evasion, including listing a relative’s Social Security number on casino tax forms, using family members as nominee owners of vehicles, and using a nominee to rent airplane hangars at the DuPage County, Ill. Airport.

Among his other offenses, Cipolla in 2020 fraudulently procured four loans under the Paycheck Protection Program and Economic Injury Disaster Loan Program, two sources of relief under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act that were intended to support small businesses during the Covid-19 pandemic. Cipolla obtained more than $1.18 million in PPP and EIDL loans by manufacturing false tax documents and submitting them to lenders.

Cipolla pleaded guilty last year to federal charges of tax evasion, wire fraud, and mail fraud. In addition to the prison term, U.S. District Judge Matthew F. Kennelly on Friday ordered Cipolla to pay $2,096,285 in restitution to the IRS, State of Illinois, U.S. Small Business Administration, and other entities and individuals victimized by his schemes.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, Hannibal Ware, Inspector General of the U.S. Small Business Administration, and Andrea M. Kropf, Special Agent-in-Charge of the U.S. Department of Transportation’s Office of Inspector General in Chicago. The government was represented by Assistant U.S. Attorneys Timothy J. Chapman and Michelle M. Petersen.

Cipolla’s crimes were a brazen betrayal of the public trust and a blatant disregard for the law. His sentence serves as a reminder that those who engage in such egregious behavior will be held accountable for their actions. The Grimy Times will continue to shine a light on those who seek to line their pockets at the expense of the American people.

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