NEW YORKER SENTENCED TO PRISON FOR
EVADING TAXES ON GARBAGE HAULING INCOME

WASHINGTON, D.C. -- A New York businessman was sentenced today in Central Islip, New York for tax evasion and was ordered to serve twelve months and one day in prison followed by three years of supervised release, the Department of Justice's Tax Division announced today. Franco Rotondo, Jr. was fined $12,000 and following his prison sentence he is required to cooperate with the Internal Revenue Service in connection with his business and personal tax liability.

"Most people comply with the tax laws. Those who don't will suffer not only substantial fines in addition to their taxes, but also time in prison," said Eileen J. O'Connor, Assistant Attorney General for the Tax Division.

Rotondo pled guilty on October 1, 2001, to the charge of attempting to evade income taxes. According to the indictment and other papers filled, Rotondo owned and operated Bayside Carting, Inc., a solid waste carting business in New York. Bayside was awarded a solid waste collection and disposal services contract with the Town of Huntington, New York, in 1990. Bayside assigned the Huntington refuse collection route to another garbage hauler, SPM Sanitation, Inc., in 1992. SPM agreed to pay Bayside $500,000 over a five-year period. Rotondo directed SPM to make the checks payable to him, then failed to report the income on Bayside's corporate income tax returns or on his personal income tax returns. Rotondo pled guilty to a charge of evading income taxes for tax year 1996. His sentence took account of additional relevant conduct.

Special agents with the Internal Revenue Service conducted the investigation. Tax Division Trial Attorney Eric P. Witiw handled the prosecution.

Anyone who has information about suspected tax fraud should report it to the Internal Revenue Service tip line at 1-800-829-0433.

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