He faces up to five years in prison, $250,000 fine
Editor’s note: This information in this story is courtesy of the Newark Field Office of the Internal Revenue Service: Criminal Investigation.
CAMDEN – A Linwood man who was a former owner of Mario’s Pizza in Ocean City man pleaded guilty Tuesday to failing to pay the IRS approximately $208,448 in taxes.
Ernesto Cannuscio, 70, pleaded guilty before U.S. District Judge Karen M. Williams and pled guilty to conspiracy to evade income taxes. Sentencing is scheduled for Oct. 25.
Cannuscio faces up to five years in prison and a maximum fine of $250,000.
“Business owners have an obligation to properly report all of the income earned whether paid in cash, check or credit card,” stated Tammy Tomlins, Acting Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Failing to intentionally report income and paying employees cash off the books to evade taxes will not go unpunished.”
According to documents filed in this case and statements made in court:
“Between October 2013 and September 2018, Ernesto Cannuscio was a 50 percent owner and operator of Mario’s Pizza, a well-known and popular pizza restaurant in Ocean City, New Jersey. Mario’s Pizza accepted cash and credit card payments for service at the restaurant. Cannuscio failed to deposit significant amounts of the cash receipts into the Mario’s Pizza’s corporate bank account.
“Cannuscio used a portion of the cash receipts to pay employees cash wages off the books. Cannuscio provided the accountant with the business bank account statements, knowing they did not contain the unreported cash receipts. Cannuscio did not tell his accountant about the cash receipts, nor did he tell the accountant about the cash payroll to Mario’s Pizza’s employees.
“Failing to tell the accountant about the unreported cash receipts caused the accountant to underreport the gross receipts on the corporate tax returns as well as the flow through income which should have been reported on Cannuscio’s personal tax return. In addition, Cannuscio evaded employment taxes by not informing the accountant about the cash wages paid to employees.
“In total, Cannuscio defrauded the government of approximately $208,448 in taxes due and owing to the government.”
According to the IRS, the conspiracy to evade taxes to which Cannuscio pleaded guilty carries a maximum potential penalty of five years in prison and total potential fine of $250,000.
Cannuscio remains free pending sentencing.
The investigation was conducted by Special Agents of IRS Criminal Investigation, under the direction of Tomlins and the U.S. Attorney’s Office, under the direction of U.S. Attorney Philip R. Sellinger.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Civil Rights Division in Camden.
William J. Hughes, Jr., Esq. and Garcia Samuuylov, Esq. of Morristown were the defense counsel.
By DAVID NAHAN/Sentinel staff