Ohio Man Loses Bet With IRS: Pleads Guilty to Tax Evasion
An Ohio gambler will spend the next 18 months in prison after pleading guilty to tax evasion charges.
Paul E. Sabatino, of Streetboro, Ohio, who pleaded guilty to the charge, was also ordered to perform 150 hours of community service and continue treatment for gambling addiction.
From 2002 to 2005, Sabatino embezzled approximately $1.7 million from a client of the CPA firm where he worked as an accountant. During that period, Sabatino incurred gambling losses exceeding the amount of the embezzlement and he used most of the embezzled funds to pay his gambling debts. Sabatino attempted to evade taxes of approximately $510,079 owing for those years by concealing the embezzlement income and laundering the money.
During the years 2002 to 2004, Sabatino deposited approximately $1.2 million of the embezzled funds into a bank account he maintained in the name of a nonexistent landscaping business. He reported only $228,200 of those funds on his tax returns, by showing them as Schedule C business receipts of the purported landscaping business. Later, Sabatino began laundering the embezzled funds with the help of a friend.
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Tags: embezzled income, filing false federal tax return, money laundering, tax cheat, tax evasion
