State Investigations Result In Multiple Arrests for Tax FraudTen county sweep sees 27 people charged with long list of felonies
For Release: Immediate, Tuesday, April 10, 2012
Contact: Geoffrey Gloak, 518-457-7377

The New York State Department of Taxation and Finance announced that 27 individuals in ten counties have been arrested on a variety of tax-related charges.

Collectively, the defendants were charged with evading hundreds of thousands of dollars in taxes on millions in earnings by not filing tax returns over multiple years, and in other cases, for participating in refund fraud schemes. 

The arrests are part of ongoing statewide enforcement initiatives targeting those who evade their tax obligations. 

Here, by county, is a list of those arrested, and the charges brought against them:

Albany County

Dr. Francis Albertini, 58, of Floral Park, pled guilty in Albany County Court to Repeated Failure to File personal income tax returns for tax years 2007 to 2009.  He faces up to four years in State prison.  Dr. Albertini had an unpaid tax liability of $35,578.00.  Dr. Albertini is scheduled to be sentenced on April 20, 2012.

Bronx County

Carlos DeLeon, Rosalind Smith, Judith Fulgencio, and Katherine Torres - DeLeon, 44, of New Rochelle, was a former employee of a Bronx grocery store.  Smith, 31, Torres, 52, and Fulgencio, 32, all of the Bronx, were employees of two Chase Bank branches in the Bronx.  All four were arrested and charged by the United States Attorney for the Southern District of New York with taking part in a massive tax fraud scheme that cost taxpayers almost $5 million in fraudulent tax refunds, half of which were fraudulent New York State tax refunds that were obtained using stolen identities from Puerto Rico.  The four defendants are charged with a variety of federal felony counts, including conspiracy, theft of government funds, and bank bribery.  DeLeon is accused of paying tens of thousands of dollars in bribes to Smith and Torres to cash the fraudulent refund checks.  If convicted, Smith, Fulgencio, and Torres each face up to 75 years in prison and DeLeon faces up to 45 years in prison.

Irma Toro - 45, a Verizon manager, was charged with one count of Criminal Tax Fraud in the Fourth Degree, a class E felony, and two counts of Repeated Failure to File, both class E felonies, for failing to file her New York State personal income tax returns for tax years 2004 through 2008.  Toro's unpaid tax liability was over $26,000 for this period. Toro is scheduled to be in Bronx County Court on April 16, 2012.

Erie County

Dr. Mian Majeed - 62, of, Williamsville, pled guilty to failing to file his New York State personal income tax returns for six years, from 2004 through 2009. Majeed, a physician, failed to report more than $984,000 of income and failed to remit over $34,884 of personal income taxes.  He was convicted of a misdemeanor violation of the Tax Law in the Amherst Town Court, was granted a conditional discharge and was ordered to pay his outstanding tax liability.

David Denue - 61, of Buffalo, pled guilty to Grand Larceny in the Second Degree and Repeated Failure to File personal income tax returns.  Denue embezzled over $250,000 from his employer, Esco Sales and Marketing, Inc, between 2004 and 2009.  Denue failed to report any of the stolen funds as income, and in addition, he also failed to file personal income tax returns for the years 2004 through 2010, failing to report and remit over $23,000 in taxes.  Denue faces up to seven years in State prison. 

Monroe County

Paul J. Tucci - 46, of Fairport, pled guilty to Criminal Tax Fraud in the Fifth Degree and Offering a False Instrument for Filing in the Second Degree in Monroe County Court.  Tucci failed to timely file his New York State personal income tax returns for tax years 2004 through 2008.   In 2009, he filed personal income tax returns but failed to claim substantial income that he derived from his personal use of his business's corporate bank account.  As a result of the Tax Department's investigation, Tucci amended the returns and filed other delinquent original returns resulting in a tax liability of over $42,000. Tucci, who faces up to one year in jail, will be sentenced on April 18, 2012.

Samuel J. Ianacone, Jr. - 65, of Pittsford, an attorney specializing in Tax Law, was, arrested and charged with Repeated Failure to File personal income tax returns and Criminal Tax Fraud in the Fourth and Fifth Degree.  Iancone failed to file his New York State personal income tax returns for tax years 2008 through 2010.  Iancone is scheduled for arraignment on April 19, 2012. 

Nassau County

Susan Pemberton, Cynthia Sibert, and Keith Campbell - Pemberton, 42, of Rockville Center, Sibert, 22, of Roslyn, and Campbell, 52, of Brooklyn, were indicted on felony charges for using phony Craigslist ads for nonexistent jobs and apartments to steal hundreds of identities nationwide and filing hundreds of fraudulent New York State personal income tax returns requesting more than $500,000 in tax refunds.  They also used the stolen identities to apply for bank loans and credit cards, and stole a total of more than $75,000 in State tax refund monies. 

Pemberton was indicted on multiple felony charges, including Grand Larceny in the Second Degree, Scheme to Defraud in the First Degree, and Offering a False Instrument for Filing in the First Degree.  Sibert was indicted and charged with Grand Larceny in the Third Degree, Offering a False Instrument for Filing in the First Degree, Identity Theft in the Second Degree, and Scheme to Defraud in the First Degree. Campbell was indicted and charged with Grand Larceny in the Third Degree, Scheme to Defraud in the First Degree, and Conspiracy in the Fifth Degree.  If convicted of the highest charge, Pemberton faces up to 15 years in State prison.  Sibert and Campbell face up to seven years in State prison.

New York County

Dr. Hector Castro, 50, a Manhattan physician, failed to file his New York State personal income tax returns for tax years, 2004 through 2009.  He was charged with Criminal Tax Fraud in the Fourth Degree, a class E felony, Criminal Tax Fraud in the Third Degree, a class D felony, and two counts of Repeated Failure to File his personal income tax returns, a class E felony.  Dr. Castro, who faces up to seven years in State prison, if convicted, is scheduled to return to court on April 10, 2012.  

Robert Conway, 66, a partner in CDG Group, L.L.C., a financial investment firm, failed to file his New York State personal income tax returns for tax years 2004 to 2009.  He was charged with two counts of Criminal Tax Fraud in the Second Degree, a class C felony, and two counts of Repeated Failure to File his personal income tax returns, a class E felony.  Conway, is due back in court on April 20, 2012.

Abhihav Shukla, 34, a portfolio manager of Alpha Harvest Capital, and a resident of Manhattan, pled guilty to Obstructing Governmental Administration in the Second Degree, a misdemeanor, for making false statements to a Tax Department investigator concerning his residency in New Jersey relating to his 2008 and 2009 New York State personal income tax returns.  Shukla received a conditional discharge, paid a $1,000 fine, and paid all of his outstanding tax liabilities.

Onondaga County

Anthony T. Paduana - 55, of, Syracuse, pleaded guilty in Onondaga County Court to one count of Offering a False Instrument for Filing in the First Degree, a class E felony, in connection with charges that he filed a false New York State personal income tax return between 2008 and 2009 in which he failed to report all of his taxable income.  As part of the plea agreement, Paduana paid more than $35,000 in back taxes and was sentenced to a three year conditional discharge.

Queens

Michael Porcelli - 63, of Glendale, Queens, was charged with three counts of Criminal Tax Fraud in the Fourth Degree, which are class E felonies, based upon his failure to file New York State withholding tax returns and failure to pay the withholding tax withheld from his employees during the tax years of 2008 through 2010. He is also charged with five misdemeanor counts of Failure to File corporate franchise tax returns from 2003 through 2007, Grand Larceny in the Third Degree, and Criminal Possession of Stolen Property.  If found guilty of the charges, he faces up to four years in State prison.

Albert Adams, Walter A. Cordero - Adams, 44, of Baldwin, the owner of the Adams Tax Service, on Queens Boulevard, and Cordero, 36, of Garden City, his partner and the owner of a related business, A & C Income Tax, Inc. (doing business as Liberty Tax Service), were charged with orchestrating a tax fraud scheme in which their businesses filed numerous false tax returns to defraud the New York State Tax Department and the IRS out of hundreds of thousands of dollars in tax refunds.  The defendants were charged with Offering a False Instrument for Filing in the First Degree, a class E felony; Falsifying Business Records in the First Degree, a class E felony; and Attempted Grand Larceny, among other crimes.  If convicted, they each face up to four years in State prison. 

Ralph Duthely - 50, an attorney who resides in Jamaica, Queens, was charged with three counts of Failure to File personal income tax returns, and three counts of Failure to Pay personal income taxes for tax years 2008 through 2010, all of which are Criminal Tax Fraud Acts in the Fourth Degree and class E felonies.  He is also charged with two misdemeanors for failing to file his New York State personal income tax returns and pay his tax liability for tax year 2007.  He faces up to four years in State prison if convicted of the charges.

David Schnall - 46, an attorney who resides in Jamaica, Queens, was charged with three counts of Failure to File personal income tax returns, and three counts of Failure to Pay personal income taxes for tax years 2008 through 2010, all of which are Criminal Tax Fraud Acts in the Third Degree and class D felonies.  He is also charged with two misdemeanors for failing to file his New York State personal income tax returns and pay taxes for tax year 2007.  He faces up to four years in State prison if convicted of the charges.

Dorine Davis - 55, of Jamaica, Queens, was charged with Failure to File personal income tax returns, and Failure to Pay personal income taxes, for tax years 2003 through 2009.  She faces up to four years in State prison if convicted of the charges.   

Marc Zazeela - 54, of Briarwood, Queens, was charged with one count of Repeated Failure to File personal income tax returns and six counts of Criminal Tax Fraud Acts, all class E felonies, for failing to file New York State personal income tax returns for tax years 2005 through 2010. He is also charged with three misdemeanors for failure to pay his personal income tax returns for tax years 2005 through 2007.  He faces up to four years in State prison if convicted of the charges. 

Suffolk County

Mark Madison - 51, of Baldwin, a former payroll manager for Arrow Electronics, pled guilty to stealing money from his employer as part of a scheme to generate a tax refund. He stole Arrow's money by causing it to be remitted to New York State as his additional withholding taxes in order to seek a fraudulent tax refund. He was arrested and charged with Grand Larceny in the Fourth Degree, a class E felony, and pled guilty to that charge in Suffolk County Court.  Madison is scheduled to appear in Suffolk County Court for sentencing on April 13, 2012.

Westchester County

Paul Sirignano - 59, an attorney residing in Chappaqua, was charged with Repeated Failure to File personal income tax returns, a class E felony, as well as Criminal Tax Fraud in the Third Degree, a class D felony, and Criminal Tax Fraud in the Fourth Degree, a class E felony.  Sirignano failed to file his New York State personal income tax returns for tax years 2008 through 2010, and his tax liability for this period is over $28,000.  Sirignano's case was adjourned until April 26, 2012.  He faces up to four years in State prison.

Martin Gamliel, 65, an attorney residing in Yonkers, is charged with one count of Criminal Tax Fraud in the Fourth Degree, a class E felony, for failing to file his New York State personal income tax return for tax year 2009. As a result of this investigation, Gamliel filed a delinquent tax return.  It was determined he has an outstanding tax liability over $5,400 for tax year 2009.  According to a felony complaint filed in Westchester County Court, Gamliel also has over $390,000 in outstanding tax liabilities for tax years 1991 through 2007.  Gamliel is scheduled to be in Westchester County Court on May 14, 2012. He faces up to four years in State prison if convicted.

All defendants are presumed innocent until proven guilty.

Assistance in investigations

New York State Tax Commissioner Thomas H. Mattox thanked all of the district attorneys, prosecutors and their staffs for their hard work and assistance in all of these investigations including: 

United States Attorney for the Southern District of New York, Preet Bharara

Albany County District Attorney P. David Soares

Bronx County District Attorney Robert Johnson

Erie County District Attorney Frank A. Sedita, III

Monroe County District Attorney Sandra Doorley

Nassau County District Attorney Kathleen M. Rice

New York County District Attorney Cyrus R. Vance, Jr.

Onondaga County District Attorney William J. Fitzpatrick

Queens County District Attorney Richard A. Brown

Suffolk County District Attorney Thomas J. Spota

Westchester County District Attorney Janet DiFiore

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Updated: April 10, 2012