Seven Rochester Area Professionals Face Felony Charges For Failing To File Tax Returns

• by New York State Department of Taxation and Finance

ALBANY, NY (12/09/2009)(readMedia)-- New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced that seven Rochester area professionals including a doctor, lawyer, dentist, nurse and three local businessmen were arrested today after they failed to report nearly $5 million in earnings and file tax returns over multiple years, avoiding payment of about $270,000 in state taxes.

These arrests mark the first stage of a statewide crackdown on a simple and all too common form of criminal tax evasion. The new crackdown is aimed at those who evade their tax obligations simply by choosing not to file their state returns.

Governor David A. Paterson said, "Tax evasion by non-filers is a major problem that deprives the state of hundreds of millions in owed tax revenues each year. To combat this evasion, the department has increased its commitment to detecting, auditing and investigating non-filers. As part of that effort, the department anticipates that dozens more non-filing tax evaders will be arrested across the state in the coming months."

Acting Commissioner Woodward said, "We want to send a clear message to those who find it inconvenient to pay their fair share of taxes: Proceed at your own risk. The Tax Department is committed to pursuing tax cheats and we are working with prosecutors in counties across the state to bring these criminals to justice. These arrests are just the tip of the iceberg."

Charged today were:

- Mary Ann Lester, 48, of 4 San Rafael Drive, Rochester, a dentist who is a partner with Periodontal Health Specialists of Rochester, PLLC, which has offices at 1815 South Clinton Avenue, Suite 510.

Lester is charged with three Class E felony counts for failing to file personal income tax returns for tax years 2003 through 2007. After being notified of the department's investigation, Lester filed her delinquent returns, indicating that she had earned $929,533 over those years and owed the state $53,410 in taxes. She has also paid $32,000 toward her income tax liability.

Lester is scheduled to be arraigned in the City Court of Rochester on December 16. If found guilty, Lester faces up to four years in state prison.

- Virginia A. Wohltmann, 50, of 1108 Roosevelt Road, East Rochester, a doctor who specializes in psychiatry and neurology, with sub-specialties in child and adolescent and geriatric psychiatry. Until December 2008 she treated patients at medical offices located at 490 Cross Keys Office Park, Fairport, and at Nicholas H. Noyes Memorial Hospital Mental Health Service Department at 1 Main Street, Dansville.

Wohltmann is charged with one count of Tax Fraud in the Fourth Degree, a Class E felony, for failing to file a tax return for 2008 and pay over $3000 in income tax due, a violation of new Tax Law Section 1803 which became effective on April 7, 2009, and four Class E felony counts of Repeated Failure to File Income Tax Returns for tax years 2002-2007.

She is scheduled to be arraigned on these charges in the City Court of Rochester on December 16. If found guilty, Wohltmann faces up to four years in state prison.

- Peter T. Montagliano, 64, of 48 Red Leaf Drive, Rochester, who from 2002 through 2005 operated an electrical contracting business and earned income primarily from sub-contracting on residential real estate construction projects.

Montagliano is charged with two Class E felony counts for failing to file personal income tax returns during those years. A department investigator determined that Montagliano's income totaled $664,097 for the delinquent years, and that he owes the state an estimated sum of $40,953 in back income taxes.

He is scheduled to be arraigned on these charges in the City Court of Rochester on December 16. If found guilty, Montagliano faces up to four years in state prison.

- Carole C. Livsey, Esq., 48, of 1191 Lee Road, Rochester, a lawyer who is a solo practitioner with offices at the same address. From 2004 through 2008, she was employed as an attorney for the Victim Resource Center of the Finger Lakes, Inc., in Newark, New York.

Livsey is charged with two Class E felony counts for failing to file personal income tax returns for tax years 2004 through 2007. She was also charged with a misdemeanor count of Tax Fraud in the Fifth Degree under new Tax Law Section 1802 which became effective on April 7, 2009, for failing to file her 2008 return.

Livsey will be arraigned on these charges in the City Court of Rochester on December 16. If found guilty, Livsey faces up to four years in state prison.

- James M. Walker, 46, of 8317 Hatch Hill Road, Naples, was a partner in a logging and lumber business, Bigwood, LLC, located in Naples, from 2005 through 2008.

Walker is charged with one count of Tax Fraud in the Third Degree, a Class D felony, for failing to file a tax return for 2008 and pay over $10,000 in income tax due, a violation of new Tax Law Section 1804 which became effective on April 7, 2009, and one felony count for failing to file returns for tax years 2005-2007. A department investigator determined that Walker's income totaled $1,421,859 for the delinquent years with his combined tax liability estimated to be $95,077 during that time.

Walker is scheduled to be arraigned on these charges in the Town Court of Naples in Ontario County on December 10. If found guilty, Walker faces up to seven years in state prison.

- Billie Jo Timmerman, 39, a licensed practical nurse who resides at 3621 Main Street, Walworth. From 2002 through 2006, she was employed as a private duty nurse and received 1099 forms reporting her income from the Office of Medicaid Management, New York State Department of Health.

Timmerman is charged with three Class E felony counts for failing to file personal income tax returns for tax years 2002 through 2006 or pay any taxes due. A department investigator determined that Timmerman's income totaled $287,963 for the delinquent years and that she owes the state an estimated $13,516 in back income taxes.

Timmerman is scheduled to be arraigned on these charges in the Town Court of Walworth in Wayne County on December 15. If found guilty, Timmerman faces up to four years in state prison.

- Marcel R. Pouliot, 56, of 5185 Kasson Road in the Town of Onondaga. From 2004 through 2006 he operated a carpentry business and provided services as subcontractor for Paul M. Fowler Development Corporation, GSA Development Corporation, and Chedell Properties.

Pouliot is charged with one Class E felony count for failing to file personal income tax returns for tax years 2004 through 2006. A department investigator determined that Pouliot's income totaled $442,196 for the delinquent years and that he owes the state an estimated $20,549 in back income taxes.

Pouliot is scheduled to be arraigned in the City Court of Syracuse on December 18. If found guilty, Pouliot faces up to four years in state prison.

Acting Commissioner Woodward said, "People who purposely fail to pay their taxes force the rest of us to shoulder a greater burden. Honest taxpayers can rest assured that we are committed to seeing that the tax laws are equitably and impartially enforced and that all taxpayers, especially those who can most afford to do so, pay their fair share.

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

These cases were investigated by the Tax Department's Special Investigations Unit in Rochester. Acting Commissioner Woodward also commended Monroe County District Attorney Michael C. Green, Onondaga County District Attorney William J. Fitzpatrick, Ontario County District Attorney R. Michael Tantillo, and Wayne County District Attorney Richard Healy for their aggressive prosecution of these cases.

"The stronger we can make the relationship between prosecutors and the investigations units in our department, the more effectively we will be able to fight tax crime," said Acting Commissioner Woodward. "Our Rochester office and the District Attorneys working with us on these cases have built those relationships to new levels of effectiveness."

All of the defendants are presumed to be innocent until proven guilty.

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