April 28, 2004

BOSTON FLORIST CONVICTED
OF FILING FALSE TAX RETURNS

Boston, MA... A Boston florist pleaded guilty late yesterday in federal court to filing false tax returns.

United States Attorney Michael J. Sullivan and Joseph A. Galasso, Special Agent in Charge, of the U.S. Internal Revenue Service, Criminal Investigation, announced that PETER CAVALLARO, SR., age 69, of 8 Smith Hill Road, Lincoln, Massachusetts, pleaded guilty before U.S. District Judge Patti B. Saris to an Information charging him with two counts of filing false tax returns.

At the plea hearing, the prosecutor told the Court that, had the case proceeded to trial, the evidence would have proven that CAVALLARO operates a family-owned business named Albany Street Wholesale Florist, Inc., a Boston-based company that serves as a wholesaler and retailer of flowers, plants and related products. For tax years 1998 and 1999, CAVALLARO diverted from the business receipts of Albany Street Wholesale Florist, for his personal benefit, approximately $442,614. CAVALLARO did not disclose or report the income represented by the diverted receipts on his federal income tax returns. CAVALLARO also failed to disclose or report on his 1997 and 1998 returns approximately $22,627 in interest income and approximately $43,500 in capital gains income generated by loan and real estate transactions in which he engaged.

As a result of his failure to disclose or report this income, CAVALLARO willfully made and filed with the IRS false and fraudulent U.S. Individual Income Tax Returns for each of the years 1997 and 1998 that substantially understated the taxes that he owed.

Judge Saris scheduled sentencing for July 27, 2004. CAVALLARO faces up to 3 years' imprisonment, to be followed by 3 years of supervised release, and a fine of up to $100,000.

The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Michael J. Pineault in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139