Former Staten Island Business Owners Who Failed To File Tax Returns Plead To Felony Tax Charges

• by New York State Department of Taxation and Finance

ALBANY, NY (11/25/2009)(readMedia)-- New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced that Joseph Devito and Mary Ann Pallidino, formerly of 132 Kramer St., Staten Island, pled guilty recently to felony tax charges for failing to file New York State personal income tax returns from 2002 through 2004 while having a tax liability in each of those years.

They are the former owners of two Staten Island businesses Abstracts Unlimited Inc. and Home Detailing Inc.

Devito, 39, and his wife, Pallidino, 40, both currently residing at 56 Memorial Blvd., Tobyhanna, PA, entered a guilty plea on November 18 in State Supreme Court before Justice Leonard P. Reinzito for Grand Larceny in the second degree, a class C felony.

The couple is scheduled to be sentenced on January 13, 2010 and could receive up to six years in prison.

Devito and Pallidino were accused of embezzling over $1 million from new homeowners and their franchiser, Fidelity National Title of Jacksonville, Florida, a title insurance company. The couple allegedly accepted payment for mortgage fees, mortgage taxes, customer fees, real property filing fees and escrow account funds and then pocketed the money and failed to report it as personal income for tax purposes.

As part of the plea agreement, Devito and Pallidino admitted to failing to file New York State personal income tax returns from 2002 through 2004. The amount due to the Tax Department is $150,000.

Acting Commissioner Woodward said, "The Tax Department, with support of prosecutors around the state, is committed to pursuing tax scofflaws. Regardless of profession or how they cheat, these scofflaws force all New Yorkers to shoulder a greater share of the tax burden, taxes that pay for essential services such as health care, education and transportation. I thank Richmond County District Attorney Daniel M. Donovan, Jr. and his staff for their aggressive prosecution of these cases.

"The department offers the Voluntary Disclosure and Compliance Program to encourage delinquent taxpayers to become compliant without facing criminal prosecution or civil penalty. It is hoped that this case will encourage other taxpayers to come forward and satisfy their tax obligation. For more information about these programs, go to the Department's website at www.nystax.gov."

###