John G. Pinone, Jr., of Glastonbury, CT made his initial appearance in district court last week on conspiracy and tax charges, according to the U.S. Justice Department and Internal Revenue Service (IRS).
Pinone and Francis B. DelMastro were the owners of the Civic Pub, a bar located in Storrs [Mansfield] and operated under the corporate name, Pindel LLC.
In March 2010, a Grand Jury returned a sealed indictment charging Pinone and DelMastro, formerly of Tolland, CT, with conspiracy and willfully filing false tax returns.
They are accused of skimming $130,050 from 2003 through 2005.
The indictment alleges that DelMastro hid the cash skimmed from Pindel LLC in his home in, among other places, the freezer, cereal boxes, empty pasta boxes, coffee cans and pots.
An indictment merely alleges that a crime has been committed and all defendants are presumed innocent until proved guilty beyond a reasonable doubt. If convicted, both DelMastro and Pinone each face a maximum of 11 years in prison and a maximum fine of $750,000.
DelMastro made his initial appearance on April 9, 2010. Pinone’s appearance was on April 22, 2010.
The Justice Department, in an April 22, 2010 written statement, says that from 2003 through 2005, DelMastro and Pinone obtained or skimmed cash from the operations of Pindel LLC and neither reported that cash as gross receipts on the tax returns filed on behalf of the company, nor reported it as income on their individual income tax returns for tax years 2003 and 2004.
The indictment further alleges that DelMastro and Pinone kept a set of books called Weekly Draw Sheets that included the Pindel LLC actual gross receipts that included both the cash deposited into the company’s bank accounts, as well as the cash not deposited.
The indictment alleges that DelMastro and Pinone did not provide the Weekly Draw Sheets to the individuals who prepared their individual tax returns and the return for Pindel LLC.
Additionally, DelMastro and Pinone are accused of attempting to impede a sales and use tax audit of Pindel LLC for calendar years 2003 through 2005 conducted by the Connecticut Department of Revenue Services (DRS) by failing to provide complete and accurate records regarding Pindel LLC’s gross receipts, including the Weekly Draw Sheets.
The Bar With No Name
According to the indictment, DelMastro also owned the Bar With No Name, located in Hartford, CT in 2003 and 2004 and he allegedly did not deposit (or caused others not to deposit), substantial amounts of cash earned at the Bar With No Name into business bank accounts.
He is accused of using that cash for his own personal benefit, and of failing to provide his tax return preparer with information regarding a large portion of the cash that he skimmed from the Bar With No Name.
Furthermore, DelMastro is accused of attempting to impede a sales and use tax audit of Bar With No Name for calendar years 2002 through 2004 conducted by Connecticut DRS by failing to provide complete records regarding business income.
The case is being investigated by IRS-Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Sarah Karwan and Tax Division Trial Attorney Mark F. Daly with the assistance of the New Haven U.S. Attorney’s Office.
Posted May 1, 2010