Tonawanda News — A North Tonawanda tax preparer was sentenced Wednesday in federal court to 30 months in prison for defrauding his customers and the government.
Vincent P. Mangione, 49, was also ordered to pay more than $800,000 in restitution to his victims by Chief U.S. District Judge William M. Skretny after years as owner of MTS Payroll and Mil-Sher Tax Services, Inc. on Military Road in Tonawanda, where he provided payroll services and book keeping and tax preparation for individuals and businesses.
The case was handled by Assistant U.S. Attorney Michael DiGiacomo, who said between 2002 and 2007 Mangione “filed fraudulent quarterly federal tax returns” without the knowledge of the clients he represented.
In order to avoid detection, according to DiGiacomo, the defendant obtained the actual amount of withholding tax the businesses owed to the Internal Revenue Service, then filed a false quarterly tax return that under represented the amount owed to the IRS and would keep the difference for his own benefit.
In December 2007, the defendant also defrauded a local bank by depositing checks into an account, which he knew had insufficient funds, and then withdrew the funds from the account prior to the checks clearing. The loss associated with both schemes totaled over $800,000
Mangione was first arrested in January 2010 and charged with 34 counts of tax fraud and evasion. He was facing 35 years in prison before taking a plea deal in 2011.
The sentencing is the result of an investigation by special agents of the criminal division of the Internal Revenue Service and the United States Secret Service.