Genovese mobster loses bid to quash IRS subpoena
A longtime Genovese crime figure lost his bid to quash an IRS subpoena
designed to determine where his money comes from and whether he can pay
more than $100,000 in taxes that the government says he owes from 2003
to 2006.
U.S. Magistrate Judge Donna F. Martinez on Tuesday denied Gus Curcio's motion to block a subpoena issued on Kent Wahlberg, a Stratford certified public accountant. The judge also dismissed Curcio's lawsuit challenging the subpoena.
Wahlberg filed returns for 27 entities -- including Hawley Enterprises, Cummings Enterprises Inc., Regensburger Enterprises Inc., Millionaire Club Inc, and Keepers Inc., a Milford strip bar, -- that the IRS says are associated with Curcio.
The Stratford resident has long been linked by federal prosecutors to the Genovese crime family. He has served federal prison time for loan sharking, extortion and obstruction of justice.
Martinez's recommended ruling must now be approved by U.S. District Judge Alvin W. Thompson, to whom the case has been assigned. If Thompson sides with the magistrate, Jeffrey Sklarz, Curcio's lawyer could appeal. Jonathan Shapiro, Wahlberg's lawyer, could file a similar suit on the accountant's behalf. Neither lawyer returned calls for comment Tuesday.
Sklarz maintains in court papers that Curcio's 2011 and 2012 earnings have no impact on the amount of his past tax liabilities, nor is past earned money relevant in determining his ability to pay today. Both Sklarz and Shapiro claim the subpoena violates Curcio's right against unreasonable search and seizure.
But Assistant U.S. Attorney John Hughes says their claims are "ludicrous."
"Income earned as recently as two years ago certainly provides relevant information about an ability to pay today," he advised the magistrate judge.
The IRS is seeking documentation from Wahlberg to determine to whom the 27 entities paid their expenses, particularly consulting and accounting fees, as well as rents and loans.
IRS Revenue Officer Joseph Darragh says Curcio owes more than $100,000 in taxes for the years 2003-2006. But Darragh has been unable to find any bank accounts, wages, income or assets in Curcio's name, according to Hughes. And Curcio has not been issued any 1099 or W-2 income forms or reported any taxable income since 2006, Hughes said.
While Darragh's attempts to find accounts for Curcio have been unsuccessful, the revenue officer discovered that the reputed mobster has several credit cards whose bills in 2011 and 2012 were paid from accounts maintained by Blue Rose LLC, Richard Urban, Regensburger Enterprises and Millennium Group Management, according to court documents.
In connection with Blue Rose, Darragh determined that Julie Kish, Curcio's wife, has been signing checks, court documents say. Hughes claims that Urban might be the president, secretary and director of Connecticut Amusements Inc, which provides gaming equipment to area restaurants but uses Curcio's post office box to receive mail. Connecticut Amusements also owes more than $50,000 to the state in unpaid employment taxes, according to Hughes.
In 2011, the 27 entities claimed gross receipts of $1,600,500 and expenses of $1,381,780. Meanwhile, Curcio claimed $218,836 in gross receipts for consulting fees on his return and Kish reported $200,000 in similar fees, according to court documents. But neither was issued a 1099, so the source of income is unknown, according to Hughes.
Hughes said the IRS believes that through Curcio's and Kish's connections to the entities, they were paid by them, and that those payments were deducted on tax returns.
"There is a clear pattern with regard to the expenses associated with the returns filed by the entities listed in the summons," Hughes said. "Almost every entity in question reported a significant loss due to expenses related to another entity. These businesses also used a combination of legal and professional fees, consulting fees, management fees and accounting fees to eliminate any identifiable earnings or secure a loss."
Hughes claims the entities claimed a significant expense for rent, utilities and in some cases vehicles.
http://www.ctpost.com/local/article/Curcio-loses-bid-to-quash-IRS-subpoena-4879358.php
U.S. Magistrate Judge Donna F. Martinez on Tuesday denied Gus Curcio's motion to block a subpoena issued on Kent Wahlberg, a Stratford certified public accountant. The judge also dismissed Curcio's lawsuit challenging the subpoena.
Wahlberg filed returns for 27 entities -- including Hawley Enterprises, Cummings Enterprises Inc., Regensburger Enterprises Inc., Millionaire Club Inc, and Keepers Inc., a Milford strip bar, -- that the IRS says are associated with Curcio.
The Stratford resident has long been linked by federal prosecutors to the Genovese crime family. He has served federal prison time for loan sharking, extortion and obstruction of justice.
Martinez's recommended ruling must now be approved by U.S. District Judge Alvin W. Thompson, to whom the case has been assigned. If Thompson sides with the magistrate, Jeffrey Sklarz, Curcio's lawyer could appeal. Jonathan Shapiro, Wahlberg's lawyer, could file a similar suit on the accountant's behalf. Neither lawyer returned calls for comment Tuesday.
Sklarz maintains in court papers that Curcio's 2011 and 2012 earnings have no impact on the amount of his past tax liabilities, nor is past earned money relevant in determining his ability to pay today. Both Sklarz and Shapiro claim the subpoena violates Curcio's right against unreasonable search and seizure.
But Assistant U.S. Attorney John Hughes says their claims are "ludicrous."
"Income earned as recently as two years ago certainly provides relevant information about an ability to pay today," he advised the magistrate judge.
The IRS is seeking documentation from Wahlberg to determine to whom the 27 entities paid their expenses, particularly consulting and accounting fees, as well as rents and loans.
IRS Revenue Officer Joseph Darragh says Curcio owes more than $100,000 in taxes for the years 2003-2006. But Darragh has been unable to find any bank accounts, wages, income or assets in Curcio's name, according to Hughes. And Curcio has not been issued any 1099 or W-2 income forms or reported any taxable income since 2006, Hughes said.
While Darragh's attempts to find accounts for Curcio have been unsuccessful, the revenue officer discovered that the reputed mobster has several credit cards whose bills in 2011 and 2012 were paid from accounts maintained by Blue Rose LLC, Richard Urban, Regensburger Enterprises and Millennium Group Management, according to court documents.
In connection with Blue Rose, Darragh determined that Julie Kish, Curcio's wife, has been signing checks, court documents say. Hughes claims that Urban might be the president, secretary and director of Connecticut Amusements Inc, which provides gaming equipment to area restaurants but uses Curcio's post office box to receive mail. Connecticut Amusements also owes more than $50,000 to the state in unpaid employment taxes, according to Hughes.
In 2011, the 27 entities claimed gross receipts of $1,600,500 and expenses of $1,381,780. Meanwhile, Curcio claimed $218,836 in gross receipts for consulting fees on his return and Kish reported $200,000 in similar fees, according to court documents. But neither was issued a 1099, so the source of income is unknown, according to Hughes.
Hughes said the IRS believes that through Curcio's and Kish's connections to the entities, they were paid by them, and that those payments were deducted on tax returns.
"There is a clear pattern with regard to the expenses associated with the returns filed by the entities listed in the summons," Hughes said. "Almost every entity in question reported a significant loss due to expenses related to another entity. These businesses also used a combination of legal and professional fees, consulting fees, management fees and accounting fees to eliminate any identifiable earnings or secure a loss."
Hughes claims the entities claimed a significant expense for rent, utilities and in some cases vehicles.
http://www.ctpost.com/local/article/Curcio-loses-bid-to-quash-IRS-subpoena-4879358.php
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