sorrentino, michael and marc indictment

8/11/2019 Sorrentino, Michael and Marc Indictment

1/15

RECEIVED

SEP

4

2 14

AT 8:3 M

WILLIAM T WALSH CLERK

1111

UNITED STATES DISTRICT COURT

D STRICT OF NEW

JERSEY

UNITED STATES

OF

AMERICA

I

Criminal No.

14-

5S S 5.1W

v.

MARC

SORRENTINO

and

MICHAEL

SORRENTINO,

a / k / a "The Si tua t ion

18

u.s.c. 371

26 u.s.c.

7206(1)

7203

I N D I C T M E N T

The

Grand

Jury in

and

fo r the Di s t r i c t of

New

Je rsey ,

s i t t i n g

a t

Newark, charges:

COUNT 1

(Conspiracy

to Defraud

the

United

Sta t e s )

In t roduc t ion

1.

At

a l l t imes

r ~ l e v n t

to

Count

1

of

t h i s

Indic tment:

A.

Defendant

MARC SORRENTINO was a r e s id en t

of

Monmouth

County,

New

Je rsey ,

was sel f-employed and rece ived income.

B.

Defendant MICHAEL

SORRENTINO,

a /k / a "The

Si tua t ion ,

was

a

r es iden t o f Ocean County,

New

Je rsey ,

and was

a

r e a l i t y

t e l ev i s ion pe rsona l i ty

who gained

fame on the

t e l e v i s ion

show "The

Je rsey

Shore," which

f i r s t

appeared

on the

MTV

network in o r about

December

2009.

Defendant

MICHAEL

SORRENTINO

was

se l f -employed

and

rece ived

income.


2/15

The Business E n t i t i e s

C. MPS Enter ta inment LLC ( MPS ) was a l i mited l i

a b i l i t y

company e x i s t i n g under the laws of the S t a t e o f

New

J e r s ey

t h a t

was

formed i n

o r about

January 2010 . Defendants M RC SORRENTINO

and

MICHAEL SORRENTINO he ld

ownership

i n t e r e s t s in MPS o f 2 0 pe rcen t

and

80 pe rcen t respec t ive ly . MPS was purpor t ed ly engaged in the

business o f exp lo i t ing

defendan t

MICHAEL SORRENTINO's c e l e b r i t y

s t a t u s through

va r ious

means, inc lud ing

but

not

l i mi

t ed to

persona l

and

t e l

ev is ion appearances product endorsements , and sa l e s o f

var ious consumer product s .

D. S i t u a t i o n Nation, Inc . ( S i

tNat )

was a l imi ted

l i a b i l i t y company e x i s t i ng under the

laws

of the S t a t e o f New Je r sey

t ha t was formed in

o r

about November 2010 . Defendant MICHAEL

SORRENTINO he ld a

100

pe rcen t ownership

i n t e r e s t

in Si tNat .

E. Si tua t ion

Product ions Inc

. , S i t u a t i o n

Capi t a l

Investments ,

LLC, and GTL

Management, Inc . ( Other

Sor ren t ino

Businesses )

were

ad d i t i o n a l bus iness e n t i t i e s e s t a b l i sh e d

by

defendan ts

M RC SORRENTI

NO and /or

MICHAEL SORRENTINO .

F . MPS was

es t ab l i s h ed

as a par tne rsh ip

and Si tNat was

es t ab l i s h ed

as

an S-Corporat ion under

the

In t e rna l Revenue Code

.

Pursuant to

In t e rna l

Revenue Serv ice ( IRS ) regu la t ions ne i the r

MPS nor

Si tNat

themselves

i ncur red tax

l i a b i

l

i t i e s fo r

t he

n e t

income

they earned fo r

a given

t ax year

. Ins t ead the

t ax

l i a b i l i t i e s

fo r

ne t income earned o r lo s s i ncur red by MPS and Si tNa t f lowed through

2


3/15

to the owners, defendants

M RC

SORRENTINO

and

MICHAEL SORRENTINO

and

these

t ax l i a b i l i t i e s were requ i red to be

r epor ted on

the owners '

U.S.

Ind iv idua l Income Tax Returns , Form 1040. MPS

was

requ i red to

annua l ly f i l e a

s Par tne r sh ip Tax

Return ,

Form

1065,

and Si tNat

was requ i red

to

annua l ly

f i l e a U.S. -Corpora t ion Tax Return , Form

1120S with the

IRS.

Among

o the r th ings , t hese forms enabled the IRS

to

i den t i f y any

income

requ i red

to

be repor t ed on t he pe r sona l income

t ax

re tu rns o f

the

owners

o f MPS

and

Si tNa t .

G. A

c e r t i f i e d

pub l i c

account ing f i rm ( the

Accounting

Firm ) , wi th o f f i c e s in Sta ten I s l and ,

New

York,

w

as

engaged i n

t he

business o f prepar ing income t ax re turns for c l i e n t s .

Sources o f Income

H. MPS

Si tNa t ,

and

defendants M RC

SORRENTINO and

MICHAEL SORRENTINO rece ived income from a

v a r i e t y

of sources ,

inc luding

persona l

and

t e l ev i s i on appearances by defendant

MICHAEL

SORRENTINO a

pa r t ne r s h i p i n t e r e s t in

a vodka

company, ownership o f

an

on l ine c l o t h i ng bus iness ,

p u b l i c a t i o n

o f an au tob iograph

y and a

comic book

fea tur ing

defendan t MICHAEL SORRENTINO

as

a superhero ,

and

endorsements o f produc t s

such

as vi tamins ,

DVDs

c lo th ing l i ne s ,

j ewel ry ,

tuxedos ,

and sunglasses .

The Bank Accounts

I .

Defendant

MICHAEL SORRENTINO

had persona l

bank

accoun ts which were

a t

a l l

t imes under hi s

c on t ro l .

At var ious

t imes , some o f these

bank

accounts were a l s o under

t he

con t ro l

o f

3


4/15

defendan t

MARC SORRENTINO.

J .

MPS

had business

bank accounts which were a t a l l t imes

under

the con t ro l

o f defendants MARC

SORRENTI NO

and /o r

MICHAEL

SORRENTINO.

K. Si tNa t

had

bus iness bank

accoun

t s whi

ch

were a t a l l

t imes under

the

con t ro l o f

defendants MARC

SORRENTINO

and

/ o r

MICHAEL

SORRENTINO.

L . The

Other

Sorrent ino Businesses

had

bank

accounts

which were

a t

a l l t imes under

the

contro l o f

defendan t s

MARC

SORRENTINO and /o r MICHAEL SORRENTINO.

M Income

from

the ope ra t ion o f MPS and Si tNa t was

depos i t ed i n t o

the

va r ious bank accounts descr ibed

above

.

efendants

MARC SORRENTINO and

MICHAEL

SORRENTINO

con t inua l l y

commingled monies among

the

bank accounts and used the monies from

the

bank account s to

pay

fo r persona l

i tems

such as

high

end

luxury

veh ic les

and

c lo th ing .

efendants

MARC SORRENTINO

and

MICHAEL

SORRENTINO a l so withdrew cash from the bank accoun ts .

4


5/15

The Conspiracy

2. From

in

o r about Januar

y

2010 through

in

o r about November

2013,

in

Monmouth and Ocean

Count ies ,

in the

D i s t r i c t o f

New

Je r sey

and

e lsewhere

defendan t s

M RC

SORRENTINO

and

MICHAEL SORRENTINO,

a / k / a

The

Si tua t ion

,

did knowingly and i n t e n t i o n a l l

y

consp i re and agree wi th each o ther

and o ther s to d e f rau d

the

United

S ta t e s by

impeding,

i mpai r ing ,

obs t ruc t ing

and

de fea t ing

th r

o

ugh

d e c e i t fu l

and

di shones t

means,

the lawful func t ions o f t he IRS,

a

cons t i tuen t agency of the

United

S ta t e s Department of

the

Treasury,

t o a sc e r t a i n

compute,

asse ss

and c o l l e c t f edera l income t axes

.

Objec t

of the

Conspiracy

3.

The ob jec t of the conspirac

y w

as

to impede,

impai r

obs t ruc t and

d e f ea t

through d e c e i t fu l and di shones t

means,

the

l awfu l

func t ions of the IRS,

a cons t i tuen t

agency

o f

the United Sta tes

Department

o f

the T reas u r

y ,

t o a s ce r t a in compute, asses s

and

c o l l e c t

f edera l

income

.

Manner and Means

o f

the

Conspi racy

4 .

t

was

p a r t

o f the

consp i racy

t ha t

defendan t s

M RC

SORRENTINO

and

MICHAEL SORRENTINO earned

approx imate ly $8.

9

mi l l i o n

in

gross income

on

which

th e

y

f a i l e d

to pay a l l f ed e r a l income t axes

due and

owing.

5. t was

fu r t h e r

p a r t of the consp i rac

y

t h a t defendants M RC

5


6/15

SORRENTINO

and

MICHAEL SORRENTINO submi t ted and caused to be

submi t ted to the IRS f a l s e

and

f raudulent

Forms 1065 and

1120s

r e l a t e d

to t h e i r

business

e n t i t i e s by unders ta t ing

the

gross r e c e ip t s o f the

businesses

and by c la iming f a l s e and /or

i n f l a t e d bus iness

expend i tu res as wel l as disal lowed

expenses .

6. t was fu r t h e r

p a r t o f the consp i racy

t h a t

defendan t s M RC

SORRENTINO

and

MICHAEL SORRENTINO submi t ted

and

caused

to

be

submi t ted to the

IRS f a l s e and f raudulent

i n d iv id u a l t ax r e tu r n s by

fa

i

l i n g t o r e p o r t

a l l income

they

rece ived.

7. t was fu r t h e r

p a r t

o f the consp i racy

t ha t

on

a t

l e a s t one

occas ion defendan t

MICHAEL SORRENTINO

a t t empted to evade bank

cur rency

r epor t ing

requirements .

8. Defendants

M RC

SORRENTINO

and

MICHAEL SORRENTINO

ente red

i n to

numerous

c o n t r a c t s with booking agencies

fo r

the

purpose

o f

defendant

MICHAEL SORRENTINO making

pe rsona l

appearances a t

var ious

venues, i nc lud ing n igh tc lubs ba rs and l i q u o r s t o r e s in exchange

fo r a booking fee The

booking fee

t yp i c a l ly ranged from 1,500 to

48,000 pe r appearance . Genera l ly a s ubs t a n t i a l p o r t i on o f the

booking fee would

be

pa id

in

cash d i r e c t l y to defendan t s

M RC

SORRENTINO

and

/

o r

MICHAEL SORRENTINO

by

the

venue on

the da te

of the

appearance. Defendants

M RC

SORRENTINO and MICHAEL SORRENTINO

depos i t ed some o f the

aforement ioned

cash t h a t t hey rece ived i n to

the bank

accounts

con t ro l l ed

by

the

defendan t s .

9 t was fu r t h e r p a r t of the consp i racy t h a t

defendan t s

M RC


7/15

SORRENTINO

and

MICHAEL SORRENINO did not

d ec l a r e all

o f the

aforement ioned

cas h t h a t they rece ived

(which amounted

to

approximately 1841000

in t ax year 2010

1

154

1

000

in t ax yea r 2011

1

and

31

1

000

in

t ax

yea r

2012)

as

income

10. t was

fu r t h e r p a r t

o f the consp i racy t ha t p r i o r to

in

o r

about November 20101 defendants

M RC

SORRENTINO and MICHAEL

SORRENTINO had payments

from

product ion companies fo r se rv ices

performed

by

defendan t MICHAEL SORRENTINO pa id to MPS

whereupon

the

product ion

companies

i s sued

Forms

1099

to

MPS

11.

I t

was

fu r t h e r

p a r t o f

the

consp i racy t ha t s hor t l y a f t e r

Si tNat was formed in November 2010

1

defendants M RC SORRENTINO and

MICHAEL SORRENTINO had

payments

from product ion companies

pa id

to

Si tNat

i n s t ead

o f MPS Because Si tNat was e s t a b l i sh e d as an

S Corpora t ion

and payments from one c o rp o ra t i o n to

another

do

not

requ i re the i s suance o f Forms 1099

1

the

produc t ion

companies did not

i s sue Forms 1099 to Si tNa t . Not a l l o f these payments

from

product ion companies to Si tNat

were

repor t ed as income.

12.

t

was fu r t h e r p a r t o f

the

consp i racy t ha t

in

o r

about 20111

defendan ts

M RC SORRENTINO

and

MICHAEL SORRENTINO

u t i l i z e d

the

Accounting

Firm to a s s i s t them

in prepa r ing t h e i r pe rsona l

and

bus iness t ax r e t u rn s fo r t ax

year

2010

1

and subsequen t ly u t i l i z e d

the Account ing Firm to a s s i s t them

in

prepa r ing t h e i r

persona l

and

bus iness t ax re tu rns

f o r

t ax years

2011

and 2012.

7


8/15

13.

t

was

fu r t h e r p a r t o f

the

consp i racy t h a t defendan t s M RC

SORRENTINO and MICHAEL SORRENTINO prov ided

i n fo rma t ion and

records

to the Account ing Firm

in

connect ion w

i t h the

Account ing

Fi rm s

prepara t ion

o f the

aforement ioned

t ax re tu rns . However, in

order

to reduce t h e i r

repor t ed income

and, t h e r e f o r e ,

the

amount

o f t ax

t ha t th e

y

would ha

v e

to pa

y

to

the I RS,

defendan t s M RC

SORRENTINO

and

MICHAEL SORRENTINO :

a)

in ten t i o

na l ly

f a i l e d

to inform

the

Accounting

Firm about

the

t rue income amount r ece ived from the

ope ra t ion

o f

MPS

and

Si tNat

and

b)

provided

the

Account ing

Firm

with

a list o f f a l s e

and

/ o r i n f l a t e d bus iness expenses t h a t

defendants

M RC

SORRENTINO and MICHAEL SORRENTINO

c la imed

to hav e i ncur red from

the

ope ra t ion o f MPS

and

Si tNat .

These

f a l s e and

/ o r

i n f l a t e d

bus iness expenses inc luded , among

o th e r

t h ings , payments

f o r

severa l

high-end v eh ic l e s ,

purchases of

high-end c lo th in g ,

and pe rsona l

grooming expenses t h a t were

disguised

as l e g i t i m a t e

business

expenses .

14.

t

was

fu r t h e r p a r t of the consp i racy

t ha t defendant

MICHAEL SORRENTINO d id

not f i l e

a f edera l income t ax r e t u rn Form

1040

fo r

ca lenda r yea r

2 0

11

.

15.

t

was fu r the r pa r t

of

the

consp i racy

t h a t

on

o r

about

November 13, 2013,

in

response to fede ra l Grand

Ju ry subpoenas

dated

October 9

2013,

MPS and Si tNat produced

QuickBooks

sof tware

conta in ing

books

and

records f o r

t ax

ye a r 2012. However a f t e r the

Grand Ju ry subpoenas

were

served

upon

MPS and Si tNa t , bu t p r i

o r to

8


9/15

MPS

and Si tNat

producing

the

books and

records

numerous

j ou rna l

e n t r i e s in the

QuickBooks

books and records

were

a l t e r e d .

Spec i f i ca l ly on

o r about

November

6, 2013, jou rna l

e n t r i e s t ha t

had

or ig ina l ly been en te red as taxab le payments to defendan t

M RC

SORRENTINO

were

a l t e r e d

and r e c l a s s i f i e d

as

non

t axab le payments to

defendant

M RC SORRENTINO.

Over t Acts

16.

In fu r the rance

of the

consp i racy

and

in

order to e f f e c t

i t s

o b jec t

defendan t s

M RC SORRENTINO

and

MICHAEL SORRENTINO

did

commit

the fo l lowing over t

a c t s among o th e r s

in the D i s t r i c t o f

New Je r sey

and

elsewhere:

a .

Tax

Year 2010

Business

Tax

Returns

i .

In o r

about

2011, defendan ts

M RC SORRENTINO

and

MICHAEL

SORRENTINO

knowingly

provided

f a l s e in fo rmat ion to the

Accounting

Firm knowing

t

would be used by the Account ing Firm to prepare

a

U. S. Par tne rsh ip Return , Form 1065 to

be

f i l e d w i t h

t h e

IRS on beha l f

o f MPS

f o r t ax

yea r 2010 . Defendants M RC SORRENTINO and MICHAEL

SORRENTINO knew

t h a t t h i s fa l se in fo rmat ion s u b s t a n t i a l l y

unde rs t a t ed the gross

r e c e i p t s

and s ubs t a n t i a l l y

o v e r s t a t e d

the

t rue

bus iness

expenses

o f MPS .

The

Accounting

Firm

t hen

p rep a red

a t ax

re tu rn fo r MPS which unde rs t a t ed the gross r e c e ip t s and

which a l s o

cla imed approx imate ly 1,178,128

in

bus iness

expenses . The

f a l s e

and/or i n f l a t e d business

expenses

included among o t h e r

i t ems


10/15

expenses

f o r

luxury

ca r s

c lo th ing

and

d i s t r i b u t i o n s to defendan ts

M RC SORRENTINO and MICHAEL SORRENTINO.

ii

In o r about June 2011 defendan t MICHAEL SORRENTINO

submi t ted and caused to be submit ted to

the

IRS a f a l s e and f raudu l

en t

U.S.

Par tne rsh ip

Tax

Return Form 1065

fo r

MPS

f o r t ax

yea r

2010

knowing t h a t

it

was

mate r i a l l y

fa l se .

b . Tax Year 2010 Personal Tax

Returns

i In o r about 2011 defendan ts

M RC SORRENTINO

and

MICHAEL

SORRENTINO

i n t e n t i o n a l l y

prov ided

f a l s e

in fo rmat ion

to the

Account ing Firm knowing it would be used by

the Account ing

Firm to

prepare

p e r s o n a l

t ax

r e tu r n s

fo r

defendan ts

M RC SORRENTINO and

MICHAEL SORRENTINO.

ii In

o r

about

June

2011

defendan t

M RC SORRENTINO

submi t ted and caused to be submi t ted to the

IRS

a f a l s e and

f raudu len t

U.S . Ind iv idua l Income Tax Return Form 1040 fo r t a x yea r

2010

knowing

t h a t it

f a l s e l y repor t ed

the

income he rece ived

from

MPS

on

Schedule

K-1. The t ax r e t u rn was ve r i f i e d by a w r i t t e n

d ec l a r a t i o n

t h a t it

was

made

under the

p en a l t i e s

of

p e r ju r y .

iii . In o r about June 2011 d efen d an t MICHAEL SORRENTINO

submi t ted

and

caused

to

be

submi t ted

to

the

IRS

a

f a l s e

and

f r au d u l en t

U. S. Ind iv idua l Income Tax Return Form

1040

fo r t ax

yea r

2010

knowing t h a t

it

f a l s e l y repo

r

t ed the

income he

rece ived

from

MPS

on

Schedule K-1. The t ax r e t u rn was v e r i f i e d by a w r i t t e n


t h a t it

was

made

under

the

p en a l t i e s

o f

p e r ju r y

.

10


11/15

c . Tax

Year 2011 Business

Tax

Returns

i In o r about 2012 defendan ts M RC SORRENTINO and MICHAEL

SORRENTINO i n t e n t i o n a l l y

provided fa l se

informat ion

to

the

Accounting

Firm knowing

it

would

be

used by t he Account ing Firm to

prepare

U.S. Tax Returns

Forms 1065 and 1120S to

be f i l e d

with

the

In te rna l Revenue

Service

on

beha l f

o f

MPS

and

Si tNat

f o r

t ax

year

2011. Defendants

M RC SORRENTINO and MICHAEL SORRENTINO

knew

t ha t

t h i s f a l s e in fo rmat ion su b s t a n t i a l l y

unde rs t a t ed the g ross

r e c e i p t s

and

s ubs t a n t i a l l y

o v e r s t a t ed

the

t r u e

bus iness

expenses

o f

MPS

and

Si tNat .

The Account ing Firm then prepared t ax r e t u rn s

f o r

MPS and

Si tNat

which unders ta ted

the gross rece ip t s

and

which

a l so cla imed

approximately 3,925,975

in bus iness

expenses . The

f a l s e

and

/

o r

i n f l a t e d bus iness

expenses

included

among o th e r

i t ems

expenses fo r

luxury ca r s c lo th in g

and

d i s t r i b u t i o n s

to defendan t s M RC

SORRENTINO and MICHAEL SORRENTINO.

ii

In

o r

about August 2012,

defendant M RC SORRENTINO

submi t ted

and

caused to

be

submi t ted to

the IRS a f a l s e

and

f raudulent

U.S. Par tne rsh ip

Tax Return,

Form 1065 fo r MPS

f o r t ax

yea r

2011,

knowing

t h a t it was mater i a l ly fa l se .

iii

In

o r

about February

2012,

defendan t

MICHAEL

SORRENTINO submi t t ed and

caused

to

be

submi t t ed to the IRS a fa l se

and f raudu len t U.S.

Tax Return, Form

1120S

fo r

Si tNa t

fo r t ax year

2011, knowing

t h a t it was

mate r i a l l y

fa l se .

11


12/15

d.

Tax Year 2011 Personal

Tax

Returns

i

In

o r about 2012 defendan ts

M RC

SORRENTINO

and

MICHAEL

SORRENTINO

i n t e n t i o n a l l y

prov ided f a l s e i n fo rma t i o n to

the

Account ing Firm knowing

it

would be used

by t he

Account ing Fi rm to

prepare

pe rsona l

t ax

r e tu r n s

fo r

defendan ts

M RC SORRENTINO and

MICHAEL SORRENTINO.

ii In o r about August 2012 defendan t M RC SORRENTINO

submi t ted and

caused to be

submi t ted

to

the IR

S a f a l s e and f raudulent

U.S.

Ind iv idua l

Income Tax

Return

Form

1040

f o r t ax

yea

r

2011 knowing

t h a t

it f a l s e ly repor t ed the

income he

rece ived

from

MPS and Si tNat

on

Schedule

K-1.

The

t ax r e tu r n was

v e r i

f i e d

by a w r i t t e n


t h a t it was made under th e p e n a l t i e s o f

p e r ju r y

.

e .

Tax Year

2012

Business

Tax

Returns

i

In

o r about

2013

defendan ts M RC SORRENTINO

and

MICHAEL

SORRENTINO i n t e n t i o n a l l y prov ided f a l s e i n fo rma t i o n to

the

Accoun

t i n g Firm knowing

it

would

be used by the Account ing

Firm

to

prepare U. S. Tax Returns Forms 1065 and 1120S to be f i l e d with the

I n t e r n a l Revenue Serv i ce on

beha l f

o f

MPS

and

Si tNa t

fo r t ax year

2012. Defendan t s

M RC

SORRENTINO and MICHAEL SORRENTINO knew t h a t

t h i s fa l se i n fo rma t i o n

s u b s t an t i all

y

unde

r s t a t e d the gross r e c e i p t s

o f MPS and Si tNa t .

The

Account ing Firm then p rep a red t ax re tu rns

fo r

MPS

and Si t N a t

which

unders ta ted

the g ross r e c e ip t s .

ii

In o r about September 2013

defendan t s M RC

SORRENTINO

and MICHAEL SORRENTINO submi t ted and caused to be submi t t ed to the

12


13/15

IRS f a l s e and f raudu len t U.S. Tax Returns Forms 1065 and 1120S fo r

MPS

and

Si tNat

f o r t ax

yea r 2012 knowing t h a t

t h ey were mate r i a l l y

fa l se .

f . Tax

Year

2012

Personal

Tax

Returns

i In o r

about 2013

defendan ts M RC SORRENTINO and MICHAEL

SORRENTINO i n t e n t i o n a l l y provided

f a l s e i n fo rma t i o n

to

the

Account ing Firm

knowing

it would be used by t h e Account ing Firm to

prepare

pe rsona l

t a x r e tu r n s fo r defendan ts M RC SORRENTINO and

MICHAEL SORRENTINO.

ii

In

o r about Apri l 2013 defendan t M RC SORRENTINO

submi t ted and caused to be submi t ted to

the IRS

a f a l s e and

f raudu len t

U.S . Ind iv idua l Income Tax Return Form 1040

f o r

t ax y e a r 2012 knowing

t h a t it

f a l s e ly r e p o r t e d t h e income he rece ived from MPS and Si tNat

on

Schedule K

1 .

The t ax r e t u rn

was

v e r i f i e d by a w r i t t e n

d ec l a r a t i o n t h a t it

was

made

under the

p e n a l t i e s

o f

p e r ju r y .

iii

In o r about September

2013 defendan t MICHAEL

SORRENTINO

submi t t ed and caused

to be

submi t t ed to

the IRS a f a l s e

and

f raudu len t

U.S.

Ind iv idua l

Income Tax

Return

Form 1040 fo r t ax

y ea r 2012 knowing t h a t it f a l s e l y

repor t ed

the income he rece ived

from

MPS

and

Si t N a t

on Schedule

K-1. The

t ax

r e t u rn

was

v e r i f i e d

by

a w r i t t e n d e c l a ra t i o n t h a t

it was

made under t he p e n a l t i e s of

per ju ry .

Al l i n v i o l a t i o n o f T i t l e 18 United S t a t e s Code Sec t i o n 371 .

13


14/15

COUNTS 2-6

F i l i n g False Tax Returns)

1. Paragraphs

1

and

4

through 16 o f Count

1

o f t h i s Ind ic tment

are

hereby

r ea l l eg ed

and

incorpora ted as

i

s e t

f o r t h

in

f u l l

he re in .

2. On o r

about

t he da tes s e t fo r t h

below, in

t he D i s t r i c t of

New

Je r sey and e lsewhere , the defendan ts s e t

f o r t h below

did

w i l l f u l l y make and s u b s c r i b e

IRS

U.S. Ind iv idua l Income

Tax

Returns ,

Forms 1040,

a s desc r ibed

in paragraph

16 of

Count

1 t h i s

Ind ic tment ,

which

were v e r i f i e d by

w r i t t en

dec la ra t ions

t h a t

t h ey

were made

under

the p e n a l t i e s of pe r ju ry , and which they d id not b e l i ev e to be t rue

and co r r ec t as to every mater ia l mat te r , as

desc r ibed

in paragraph

6 o f

Count

1 o f t h i s

Ind ic tment , as fo l lows:

COUNT DEFEND NT T X YE R

PPROXIM TE D TE

RETURN

FILE

2

M RC

SORRENTINO

2010

J u ly

5,

2011

3 MICHAEL SORRENTINO 2010

J u ly

5, 2011

4

M RC

SORRENTINO

2011 August 23,

2012

5

M RC

SORRENTINO

2012

Apr i l

15,

2013

6 MICHAEL SORRENTINO 2012

September

13, 2013

In

v i o l a t i o n

of T i t l e

26,

United

S ta t e s

Code, Sec t ion

7206

1)

14


15/15

OUNT 7

(Fa i lu re to

Make Tax

Return)

1 . Paragraphs 1 and 4

through

16 o f

Count

1 o f t h i s Ind ic tment

a re

hereby r ea l l eg ed and incorpora ted as

i s e t

f o r t h i n fu ll

he re in .

2.

During t he

ca l en d a r

year

2011, MICHAEL SORRENTINO had and

r ece i v ed

gross

income

o f

approximate ly $1 ,995 ,757 ,

which w

as

der ived

from t h e opera t ion

o f

h is

business

e n t i t i e s .

3 .

Having

rece ived t h i s income, MICHAEL SORRENTINO was

requ i red

by

law,

fo l lowing

the

c lose

of

ca lenda r yea r

2011,

and

on

o r before Apr i l 16,

2012,

to make an income

t a x

r e t u r n to

the

IRS

s t a t i ng

s p e c i f i c a l l y the i tems

of

h i s

gross

income and

any

deduct ions

and

c re d i t s to

which he was

en t i t l ed .

4. On o r about A p r i l 16, 2012, i n the D i s t r i c t of New

Je r sey

and e lsewhere , defendan t

MICHAEL SORRENTINO

a /k / a The

S i tu a t i o n ,

knowing and b e l i ev in g the foregoing fac t s , d id w i l l f u l l y f a i l to

make

an income t ax r e t u rn t o the IRS.

In

v io

l a t i o n

o f T i t l e 26, Uni ted S t a t e s Code,

Sec t ion

7203.

A

TRUE

BILL

t ~ ~

Uni ted S ta

l es At to rney

FORE PERSON

15

sorrentino, michael and marc indictment

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