FRATELLI’S RESTAURANT AND OWNERS ADMIT GUILT IN EVADING
MORE THAN $600,000 IN TAXES AND INSURANCE PREMIUMS OWED TO THE
STATE AND CITY
Bronx District Attorney Robert T. Johnson today announced the conviction of Fratelli’s Restaurant and its owners on charges of evading more than $600,000 in taxes and unemployment insurance premiums owed to the city and state of New York.
Ed Bastone, 42, of Mahopac, New York, and Luigi Bastone, 44, of Mahopac, New York, the owners of Fratelli’s Restaurant, at 2507 Eastchester Road, each pled guilty to one count of New York City Administrative Code 11-4004 (a), False returns or Reports: Corporate Taxes, (a Class A Misdemeanor). Fratelli’s Restaurant, the corporate entity, pled guilty to a single felony count of New York City Administrative Code 11-4004 (b), False returns or Reports: Corporate Taxes.
Although the pleas covered filings from calendar year 2004, the defendants evaded payment of taxes and insurance premiums owed to New York State and New York City from December 1, 2003 through May 31, 2007.
Under terms of the agreement the defendants made restitution in the amount of $600,015.71, representing New York State and New York City sales taxes, New York City General Corporation Tax, and New York State Insurance Fund premiums. Restitution was made prior to being sentenced to a conditional discharge by Acting State Supreme Court Justice Steven Barrett.
The defendants, accompanied by their attorney, surrendered this morning to Bronx District Attorney Detective Investigators Merrybet Tavarez and Modesto Acevedo. The charges, according to court papers, were the result of an audit by the New York City Department of Finance. Auditors reviewed business records, receipts and financial ledgers, and discovered discrepancies between the gross sales reported in those records and the sales and profit figures reported on corporate tax returns.
District Attorney Johnson thanked the following for the hard work that resulted in today’s conviction: Michael Hyman, Interim Commissioner for Tax, Audit, Policy and Enforcement, New York City Department of Finance, Assistant District Attorney Thomas Kapp, Chief of the Arson/Auto/Economic Crimes Bureau, Assistant District Attorney Ann Marie Cherry, of the Arson/Auto/Economic Crimes Bureau, Detective Investigator Merrybett Tavarez, and Detective Investigator Modesto Acevedo and Detective Investigator Henry Nurse, Director of Security.
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