Anthony Riccio, Payroll Tax Fraud, New York 2016

Anthony Riccio, the owner of a Brooklyn construction business, AD Custom Interiors Inc., has pleaded guilty to payroll tax fraud, leaving a trail of unpaid wages and taxes in his wake.

According to court documents, Riccio, the sole owner and operator of AD Custom, had a duty to truthfully account for and pay over to the IRS payroll taxes owed by his employees. However, from approximately January 2011 through January 2016, Riccio cashed over $3.1 million in checks paid to AD Custom, using some of the cash to pay wages to his employees, but concealing these payments from his accountant.

This deliberate deception led to the underreporting of wages and payroll taxes owed, resulting in a staggering $255,433 in unpaid federal payroll taxes. These taxes included income, Social Security and Medicare taxes, owed by AD Custom and its employees.

Riccio’s actions have caught up with him, and he is scheduled to be sentenced on October 21, facing a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties, all of which will be determined by a federal district court judge after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg made the announcement, highlighting the importance of holding individuals accountable for their actions. IRS-Criminal Investigation is leading the case, with Trial Attorneys Shawn T. Noud and Mark W. Kotila of the Justice Department’s Tax Division prosecuting the case.

The guilty plea serves as a reminder to business owners of the importance of transparency and compliance with tax laws. Riccio’s actions not only cheated the government out of revenue but also put his employees at risk of not receiving the wages they earned.

Riccio’s case is a stark reminder that tax evasion will not be tolerated, and those who engage in such activities will be held accountable for their crimes.

As the investigation continues, it is clear that Riccio’s actions have had far-reaching consequences, not only for himself but also for his employees and the community at large.

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