Monmouth County man sentenced for long running tax evasion
A Monmouth County man has been sentenced to 2-years in prison for evading more than $2.3-million in personal and corporate income taxes between 2002 and 2011 as well as in 2015, announced U.S. Attorney Craig Carpenito.
Tito Viteri, 41, of Cream Ridge, previously plead guilty to one count of tax evasion.
In addition to the prison term, Viteri was sentenced to two years of supervised release.
Since 2002, Carpenito said that Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services.
Between 2002 and 2011, and in 2015, Viteri evaded the payment of more than $2 million in personal and business-related taxes by:
• “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities.
• failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid.
• receiving unreported kickback income from an employee.
• concealing personal income and assets by using nominees, and depositing substantial amounts of income into nominee bank accounts and failing to report that income on his personal tax returns.
In 2008, an IRS audit showed that Viteri owed approximately $785,000 in unpaid taxes for one of his companies and that he owed approximately $315,000 in unpaid personal income taxes.
Viteri began making payments to the IRS in August 2011, but then stopped making in December of 2013, claiming he was not “bringing enough money home.”
Carpenito said that despite his claims, from February 2013 to February 2016 Viteri made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield.
In 2016 Viteri still had substantial outstanding tax liabilities when he purchased a home in Cream Ridge for more than $920,000.
To conceal from the IRS the source of the funds used to purchase the home, Viteri arranged for the home to be purchased in his mother’s name.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.
Defense counsel: Darren Gelber Esq., Woodbridge, New Jersey.
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