BUFFALO, N.Y. (WKBW) — A Niagara Falls businessman has pleaded guilty to a tax charge and as part of his plea he will pay over $100,000 and forfeit $1 million.
The U.S. Attorney's Office announced that 67-year-old Frank R. Parlato, Jr. pleaded guilty to willful failure to file returns involving cash transactions of more than $10,000 before U.S. District Judge Richard J. Arcara. As part of his plea, he will pay $184,939.51 to the IRS and forfeit around $1 million that was seized by the government in 2015.
According to Assistant U.S. Attorneys Charles M. Kruly and Michael DiGiacomo between 2004 to 2017 Parlato had an ownership interest in and/or managed the One Niagara Building in Niagara Falls. He permitted vendors to lease space inside and outside the building and each season he negotiated new seasonal rental agreements, which typically required each vendor to pay 25% of their gross revenue as rent.
The U.S. Attorney's Office said during the time period that Parlato owned and/or managed One Niagara, he willfully failed to file IRS Forms 8300 for annual cash rent payments he received from the vendors which were in excess of $10,000.
"For example, in 2008, a vendor who operated a food stand, agreed to rent space for 25% of the vendor gross sales. In 2010, the vendor paid Parlato approximately $19,970 in rent in cash, however, Parlato failed to file an IRS Form 8300 for the 2010 season. Parlato admits that from 2006 to 2017, the tax loss from unreported income was approximately $390,346," a release says.
He is scheduled to be sentenced on December 7, the charge carries a maximum penalty of five years in prison and a fine of $25,000.