April
18, 2005
NEW HAVEN CAR DEALER PLEADS GUILTY TO FILING FALSE
REPORTS WITH IRS
Kevin J. O’Connor, United States Attorney for the
District of Connecticut, announced that MICHAEL CESTARO, age 26, of
543 Clintonville Road, North Haven, Connecticut, pleaded guilty today
to federal currency reporting violations. United States District Judge
Mark R. Kravitz accepted CESTARO’s plea of guilty this morning in New
Haven. CESTARO waived his right to be indicted by a federal grand jury
and pleaded guilty to a two-count Information charging him with one
count of filing a false IRS Form 8300 and one count of failing to file
an IRS Form 8300 when one was required to be filed.
As revealed in today’s court proceedings, the Federal
Bureau of Investigation and Internal Revenue Service conducted an undercover
operation in the summer of 2003, which targeted Cestaro and Sons, Inc.,
a local pre-owned car dealership. During the undercover operation, a
law enforcement officer, who was posing as a drug trafficker, purchased
a 2001 Chevy Tahoe for $30,540 in cash. During the negotiations for
the Chevy Tahoe, the undercover officer told CESTARO and other employees
at the dealership that the money was from drug proceeds and that he
did not want his name on any of the paperwork. CESTARO agreed to sell
the vehicle to the undercover agent, but placed all of the paperwork
in the name of the girlfriend of the undercover agent, who was also
an undercover agent. The law requires that all trades and businesses,
which includes car dealerships, file a Form 8300 with the IRS when it
receives more than $10,000 in cash in a single transaction or related
transactions during a 12-month period. CESTARO filed the IRS Form 8300,
but falsely identified the undercover agent’s girlfriend as the purchaser
of the vehicle, giving rise to the false reporting offense.
Count Two involved the purchase of a 1998 Lexus GS300
in June 2003. As further revealed in today’s court proceedings, a customer
negotiated for the purchase of the Lexus for $18,000. After making a
$1,000 cash down payment, the customer walked into the dealership to
pay the balance in cash. However, CESTARO refused to take more than
$10,000 because he did not want to file the Form 8300. Instead, CESTARO
took $9,000 in cash and directed the customer to return with a cashier’s
check for $9,000.
“This investigation and prosecution should serve
as a warning to all business owners who willfully ignore IRS reporting
requirements and knowingly accept payment for products and services
in drug money,” U.S. Attorney O’Connor stated.
Judge Kravitz scheduled sentencing for July 7, 2005,
at which time CESTARO faces a maximum term of imprisonment of five years
on each count.
This matter was investigated by the Federal Bureau
of Investigation and the Internal Revenue Service - Criminal Investigation..
This case is being prosecuted by Assistant United States Attorney Mark
D. Rubino.
http://www.usdoj.gov/tax/usaopress/2005/txdv0520050805-2.html
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