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Justice Department Sentences New York Brothers on Tax Charges
Brothers Anthony and Vincent Sainato, owners of 11 trucking
and construction companies, were sentenced to jail and ordered
to pay restitution for their tax evasion conspiracy to avoid
paying corporate taxes, according to a Justice Department
TWO BROTHERS WHO OPERATED TRUCKING AND CONSTRUCTION COMPANIES IN
NEW YORK SENTENCED ON TAX CHARGES
=============== SUMMARY ===============
Brothers Anthony and Vincent Sainato, owners of 11 trucking and construction
companies, were sentenced to jail and ordered to pay restitution for their
tax evasion conspiracy to avoid paying corporate taxes, according to a Justice
The brothers earned more than $16 million gross between
1990 and 1996, but filed only 13 corporate income tax returns
when they should have filed about 34, and failed to report
more than $15 million in gross receipts. The defendants used
this unreported corporate income for personal expenses, income
that should have been reported on their personal income tax
Both brothers were ordered to pay restitution for the tax
evasion plan involving kickbacks and money laundering, and
they were sentenced to jail, Anthony for six years and Vincent
for 40 months.
=============== FULL TEXT ===============
DEPARTMENT OF JUSTICE
March 5, 2001
 WASHINGTON, D.C -- Two brothers who operated 11 trucking and construction
companies on Long Island, New York were sentenced to jail time and ordered
to pay restitution for their involvement in a tax evasion conspiracy set up
to avoid paying taxes on more than $15 million in gross corporate receipts,
the Justice Department announced today.
 Anthony Sainato was sentenced to 6 years in jail and
his brother, Vincent Sainato, to a 40-month prison term late
on Friday, March 2, 2000, Each also was sentenced to serve
three years of supervised release. Following a six-week trial,
the Sainatos were convicted in March, 2000. In addition to
the conspiracy charge, Anthony Sainato was also convicted
of corporate tax evasion, aiding and abetting the filing
of a false corporate tax return, and two counts of signing
and filing a false corporate tax return. He was acquitted
of tampering with a witness.
 The prosecution of the Sainato brothers resulted from
an investigation into Royce Aerospace, a Department of Defense
subcontractor who had been paying kickbacks to customers
in the Now York area in exchange for business.
 The Sainatos operated the trucking, construction and
delivery companies under the names Alpha Trucking Corporation,
which did business as Suffolk Distributing, Marietta Trucking,
Marietta Construction, Marietta Equipment Leasing, New Way
Removal, New Way Environmental, New Way Rental, Safe Way
Removal, Safe Way Rental, Noell Container Service and Eastern
Transportation. The brothers ran these companies from Far
Rockaway, Queens, Long Island City and Syosset.
 Between 1990 and 1996, the companies earned more than
$16 million in gross receipts and were obligated to make
and file approximately 34 corporate income tax returns. During
this time, however, only 13 income tax returns were in fact
filed and, of those, only four reported any income. More
than $15 million in gross corporate receipts went unreported.
 The conspiracy involved diverting company checks to
third parties to be cashed, depositing checks issued to the
Sainatos' companies into unrelated bank accounts; transferring
funds among different bank accounts to disguise the paper
trail, and issuing checks to fictitious individuals. The
defendants used much of the unreported corporate income for
personal expenses, such as mortgages, club memberships, and
credit card bills. The payment of these personal expenses
was income to the Sainatos that should have been reported
on personal tax returns.
 The Sainatos were investigated jointly by the IRS and by
the Department of Defense, Defense Criminal Investigative Service.
The trial was prosecuted by Department of Justice, Tax Division,
trial attorneys Barry Jonas, David Bloch and Deborah Kravitz.
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