MONMOUTH COUNTY – A Monmouth County man was sentenced to two years in prison for evading over $2 million in taxes between 2002 and 2011 and in 2015, announced US Attorney Craig Carpenito.
Tito Viteri, 41, of Cream Ridge was sentenced on Nov. 5 on one count of tax evasion.
According to documents filed in this case and statements made in court, Viteri owned and operated numerous trucking companies that performed delivery services.
Between 2002 and 2011, and in 2015, Viteri evaded paying more than $2.3 million in personal and business-related taxes by “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; receiving unreported kickback income from an employee; and concealing personal income and assets by using nominees, and depositing substantial amounts of income into nominee bank accounts and failing to report that income on his personal tax returns, according to Carpenito.
In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and that he personally owed approximately $315,000 in unpaid personal income taxes.
Viteri began making payments to the IRS in August 2011, but these payments stopped in December 2013. Viteri claimed he was not “bringing enough money home.”
Despite this, from February 2013 to February 2016 Viteri made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield. And in 2016, he purchased a home in Cream Ridge for more than $920,000, done in his mother’s name in order to conceal from the IRS the source of the funds.
Viteri has been sentenced to 24 months in prison and two years of supervised release.