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Date: 08-23-2020
Case Style:
United States of America v. Donald Cariati, Jr.
Case Number: 3:20-cr-00035-MPS
Judge: Michael P. Shea
Court: United States District Court for the District of Connecticut (Hartford County)
Plaintiff's Attorney: United States District Attorney’s Office
Defendant's Attorney:
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Description:
Hartford, CT - The United States of America charged Donald Cariati, Jr., age 45, with obstruction of justice.
According to court documents and statements made in court today, Cariati owns and operates Cariati Developers Inc. (“CDI”), a snowplow and hauling business based in Wallingford. Between 2013 and 2017, Cariati paid several CDI employees with company checks asserting that they were independent contractors or subcontractors in order to evade the responsibility to withhold and pay over taxes to the IRS. However, Cariati and CDI failed to issue Forms 1099 to these “subcontractors” for particular years. Cariati also informed certain individuals that they were being paid off the books, meaning that their pay was not reported to the IRS.
In late 2015, the IRS began an audit of CDI. During the course of this audit, Cariati caused fraudulent invoices to be made available to an IRS revenue agent. The invoices were purported to have been created in 2013 and purported to substantiate that individuals were appropriately considered subcontractors.
The investigation also revealed that, in 2014, CDI paid an invoice related to products for Cariati’s cigarette boat. During the IRS audit, Cariati caused his accountant to provide to the IRS a false invoice to make it appear that the purchase was a business expense and not a personal expense.
Judge Shea ordered Cariati to pay restitution of $1,077,048.99. Cariati paid $1 million toward his tax obligation today.
On February 28, 2020, Cariati pleaded guilty to one count of obstructing or impeding the due administration of the Internal Revenue laws.
Cariati, who is released on bond, is required to report to prison in 90 days.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Jennifer Laraia.
CORRUPT OR FORCIBLE INTERFERENCE (Corrupt Endeavor to Obstruct or Impede the Due Administration of the Internal Revenue Laws)
(1)
Outcome: JUDGMENT as to Donald Cariati, Jr. Count 1, The defendant is hereby committed to the custody of the Federal Bureau of Prisons to be imprisoned for a total of 12 months and 1 day; supervised release for a total term of 1 year; special assessment of $100.
Plaintiff's Experts:
Defendant's Experts:
Comments: