Click Here to Watch How To Find A Lawyer by Kent Morlan
Click Here For The Best Central Islip Criminal Defense Lawyer Directory
If no lawyer is listed, call 918-582-6422 and MoreLaw will help you find a lawyer for free.
Description: Central Islip, New York criminal law lawyer represented Defendant charged with illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service (IRS), and filing false tax returns.
“For years the defendant (Lorraine Pilitz, age 64) thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, but the jury saw through the lies and has held her responsible for her actions,” stated United States Attorney Peace. “Business owners who place greed above following the rule of law will face the consequences.”
Mr. Peace thanked the Suffolk County Police Department’s Treasury Enhanced Prosecution Program for their assistance with the case.
“Lorraine Pilitz set up a complicated scheme to hide hundreds of thousands of dollars from the IRS by grossly underreporting her income and having an ‘off-the-books’ payroll. As the investigative arm of the IRS, IRS Criminal Investigation is strategically positioned to track down all those who look to steal from the U.S. Treasury and the American public to line their own pockets,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island. Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000. Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000. As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS. As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.
31:5324(a)(3) and 5324(d)(2); 18:2 and 3551 et seq. STRUCTURING TRANSACTIONS TO EVADE REPORTING REQUIREMENTS; 31:5317(c)(1)(A) and 5317(c)(1)(B); 21:853(p) FORFEITURE ALLEGATION as to Count 1.
(1rss)
(a) Domestic Coin and Currency Transactions Involving Financial Institutions.—No person shall, for the purpose of evading the reporting requirements of section 5313(a) or 5325 or any regulation prescribed under any such section, the reporting or recordkeeping requirements imposed by any order issued under section 5326, or the recordkeeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508—
(1) cause or attempt to cause a domestic financial institution to fail to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to maintain a record required by an order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508;
(2) cause or attempt to cause a domestic financial institution to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to maintain a record required by any order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91–508, that contains a material omission or misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.
(b) Domestic Coin and Currency Transactions Involving Nonfinancial Trades or Businesses.—No person shall, for the purpose of evading the report requirements of section 5331 or any regulation prescribed under such section—
(1) cause or attempt to cause a nonfinancial trade or business to fail to file a report required under section 5331 or any regulation prescribed under such section;
(2) cause or attempt to cause a nonfinancial trade or business to file a report required under section 5331 or any regulation prescribed under such section that contains a material omission or misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with 1 or more nonfinancial trades or businesses.
(c) International Monetary Instrument Transactions.—No person shall, for the purpose of evading the reporting requirements of section 5316—
(1) fail to file a report required by section 5316, or cause or attempt to cause a person to fail to file such a report;
(2) file or cause or attempt to cause a person to file a report required under section 5316 that contains a material omission or misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure or assist in structuring, any importation or exportation of monetary instruments.
(d) Criminal Penalty.—
(1) In general.—Whoever violates this section shall be fined in accordance with title 18, United States Code, imprisoned for not more than 5 years, or both.
(2) Enhanced penalty for aggravated cases.—Whoever violates this section while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not more than 10 years, or both.
26:7212(a); 18:2 and 3551 et seq. CORRUPT OR FORCIBLE INTERFERENCE
(2ss)
(a) Corrupt or forcible interference
Whoever corruptly or by force or threats of force (including any threatening letter or communication) endeavors to intimidate or impede any officer or employee of the United States acting in an official capacity under this title, or in any other way corruptly or by force or threats of force (including any threatening letter or communication) obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title, shall, upon conviction thereof, be fined not more than $5,000, or imprisoned not more than 3 years, or both, except that if the offense is committed only by threats of force, the person convicted thereof shall be fined not more than $3,000, or imprisoned not more than 1 year, or both. The term “threats of force”, as used in this subsection, means threats of bodily harm to the officer or employee of the United States or to a member of his family.
(b) Forcible rescue of seized property
Any person who forcibly rescues or causes to be rescued any property after it shall have been seized under this title, or shall attempt or endeavor so to do, shall, excepting in cases otherwise provided for, for every such offense, be fined not more than $500, or not more than double the value of the property so rescued, whichever is the greater, or be imprisoned not more than 2 years.
26:7206(1); 18:3551 et seq. FRAUD AND FALSE STATEMENTS
(3rss-5rss)
Any person who—
(1) Declaration under penalties of perjury
Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or
(2) Aid or assistance
Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or
(3) Fraudulent bonds, permits, and entries
Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or
(4) Removal or concealment with intent to defraud
Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by this title; or
(5) Compromises and closing agreements
In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully—
(A) Concealment of property
Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or
(B) Withholding, falsifying, and destroying records
Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax;
Outcome: 11/09/2022 134 Minute Entry for proceedings held before Judge Joanna Seybert: Jury Trial as to Lorraine Pilitz completed on 11/9/2022. See entry for additional details. (Court Reporter Lisa Schmid.) (ELR) (Main Document 134 replaced on 11/9/2022 to edit clerical error in the counts of conviction. NEF regenerated. ELR) (Entered: 11/09/2022)
11/09/2022 135 Jury Notes as to the trial of Lorraine Pilitz from 11/8/2022 through 11/9/2022. (ELR) (Entered: 11/09/2022)
11/09/2022 136 JURY VERDICT as to Lorraine Pilitz (1): Guilty on Counts 1rss, 2rs, and 3rss - 5rss. (ELR) (Entered: 11/09/2022)
11/09/2022 137 JURY VERDICT on Forfeiture as to Lorraine Pilitz. (ELR) (Entered: 11/09/2022)
11/09/2022 138 Order of Transportation for the Jury as to Lorraine Pilitz. Ordered by Judge Joanna Seybert on 11/9/2022. (ELR) (Entered: 11/09/2022)
11/09/2022 139 Order of Sustenance for the Jury as to Lorraine Pilitz. Ordered by Judge Joanna Seybert on 11/9/2022. (ELR) (Entered: 11/09/2022)
Plaintiff's Experts:
Defendant's Experts:
Comments:
